AIR.PA closes lower for the 2nd day in a row
Airbus SE (AIR.PA) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AIR.PA ended the week 9.59% higher at 54.04 after losing €0.61 (-1.12%) today. Trading up to €1.08 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AIR.PA as at May 22, 2020):
Friday's trading range has been €2.36 (4.37%), that's below the last trading month's daily average range of €3.40. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AIR.PA.
Four candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man. The last time a Rickshaw-Man showed up on March 20th, AIR.PA lost -13.77% on the following trading day.
Prices are trading close to the key technical support level at 52.62 (S1). After having been unable to move lower than 53.29 in the prior session, the market found buyers again around the same price level today at 52.92.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 55.90 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 51.51 where further sell stops could get activated. With prices trading close to this year's low at 48.12, downside momentum might speed up should Airbus break out to new lows for the year. As prices are trading close to May's high at 57.90, upside momentum could accelerate should the stock mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Rickshaw-Man" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Airbus. Out of 34 times, AIR.PA closed higher 61.76% 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 58.82% with an average market move of -0.34%.