AIR.PA dominated by bulls lifting the market higher throughout the day
Airbus SE (AIR.PA) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AIR.PA ended Thursday at 72.29 surging €12.28 (20.46%). This is the biggest single-day gain ever recorded for the share. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 61.40, the stock confirmed its breakout through the previous session high after trading up to €13.79 above it intraday.
Daily Candlestick Chart (AIR.PA as at Mar 26, 2020):
Thursday's trading range has been €16.19 (26.98%), that's far above the last trading month's daily average range of €8.51. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for AIR.PA.
One bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 72.33 (R1), the market closed below it after spiking up to 75.19 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on March 17th, AIR.PA lost -22.18% on the following trading day.
While Airbus is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Airbus. Out of 300 times, AIR.PA closed higher 50.67% 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 56.67% with an average market move of 0.90%.