TECDAX closes higher for the 3rd day in a row
TecDAX (TECDAX) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, TECDAX ended Wednesday at 3117.23 gaining €24.28 (0.79%). Closing above Tuesday's high at 3107.30, the market confirmed its breakout through the prior session high after trading up to €20.44 above it intraday.
Daily Candlestick Chart (TECDAX as at Sep 16, 2020):
Wednesday's trading range has been €27.84 (0.9%), that's below the last trading month's daily average range of €57.38. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TECDAX.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
The index managed to close back above the 20-day moving average at 3094.52 for the first time since September 2nd. When this moving average was crossed above the last time on August 11th, TECDAX gained 0.75% on the following trading day. Prices are trading close to the key technical resistance level at 3134.08 (R1).
Although the stock index is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to September's high at 3198.05, upside momentum might speed up should TecDAX mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for TecDAX. Out of 155 times, TECDAX closed higher 56.77% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 62.58% with an average market move of 0.71%.
With four out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are BEL20 gaining 0.88% and N100 closing 0.3% higher. On the flipside the worst performer has been FTSE closing -0.44% lower. Read more