AIR.PA breaks back above 20-day moving average
Airbus SE (AIR.PA) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
AIR.PA ended Wednesday at 70.79 gaining €1.31 (1.89%). Trading up to €0.82 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on September 1st, AIR.PA gained 3.61% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AIR.PA as at Sep 16, 2020):
Wednesday's trading range has been €2.10 (3.02%), that's below the last trading month's daily average range of €2.72. 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. Prices continued to consolidate within a tight trading range between 67.75 and 71.65 where it has been caught now for the whole last trading week.
After moving lower in the previous session, the market managed to close higher but below the prior day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Airbus managed to close back above the 20-day moving average at 70.56.
While the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the nearby swing high at 71.65 where further buy stops might get triggered. As prices are trading close to September's low at 66.79, downside momentum could speed up should AIR.PA mark new lows for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for Airbus. Out of 46 times, AIR.PA closed higher 69.57% 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 54.35% with an average market move of 1.64%.