ALV.DE closes higher for the 4th day in a row
Allianz SE (ALV.DE) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, ALV.DE ended the week 0.9% higher at 178.96 after gaining €0.44 (0.25%) today, outperforming the DAX (-0.31%). Today's close at 178.96 marks the highest recorded closing price since December 5, 2018. Trading €1.28 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (ALV.DE as at Jan 11, 2019):
Friday's trading range has been €3.20 (1.78%), that's slightly above the last trading month's daily average range of €3.02. 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 significantly lower than usual for ALV.DE.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading down to 177.70 earlier during the day, the share bounced off the key technical support level at 178.24 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on January 3rd, ALV.DE gained 2.43% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 175.63.
Although Allianz is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Allianz. Out of 469 times, ALV.DE closed higher 55.44% 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 56.08% with an average market move of 0.64%.