AIR.PA closes within previous day's range after lackluster session
Airbus SE (AIR.PA) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, AIR.PA finished the month 12.03% higher at 63.52 after gaining €0.17 (0.27%) today. Trading €1.26 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 23rd, AIR.PA lost -5.68% on the following trading day. 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 Jun 30, 2020):
Tuesday's trading range has been €3.14 (4.86%), that's below the last trading month's daily average range of €4.83. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AIR.PA.
Unable to break through the key technical resistance level at 65.26 (R1), Airbus closed below it after spiking up to 65.92 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could accelerate should prices move below the close-by swing low at 60.18 where further sell stops might get activated. As prices are trading close to June's low at 57.66, downside momentum could speed up should the stock mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Airbus. Out of 342 times, AIR.PA closed higher 52.92% 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 55.56% with an average market move of 0.65%.