AFX.DE closes below its opening price unable to hold early session gains
Carl Zeiss Meditec AG (AFX.DE) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
AFX.DE finished the week 4.59% higher at 74.00 after flat today, outperforming the TecDAX (-0.54%). Trading €0.40 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AFX.DE as at Jan 11, 2019):
Friday's trading range has been €1.05 (1.41%), that's far below the last trading month's daily average range of €1.94. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AFX.DE.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
After having been unable to move lower than 73.60 in the prior session, the market found buyers again around the same price level today at 73.75. The last time this happened on December 28, 2018, AFX.DE gained 2.27% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 73.60 where further sell stops could get activated. 2018's high at 76.85 is within reach and we might see further upside momentum should Carl Zeiss manage to break out beyond.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Carl Zeiss. Out of 303 times, AFX.DE closed higher 52.48% 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 57.43% with an average market move of 1.28%.