AM3D.DE breaks below key technical support level
SLM Solutions Group AG (AM3D.DE) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, AM3D.DE finished the week -14.13% lower at 10.94 after losing €0.16 (-1.44%) today, strongly underperforming the TecDAX (0.45%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 11.00, SLM Solutions confirmed its breakout through the previous session low after trading up to €0.06 below it intraday.
Daily Candlestick Chart (AM3D.DE as at Dec 07, 2018):
Friday's trading range has been €0.36 (3.21%), that's below the last trading month's daily average range of €0.76. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AM3D.DE.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices broke below the key technical support level at 11.10 (now R1), which is likely to act as resistance going forward. The last time this happened on October 23rd, AM3D.DE lost -5.00% on the following trading day. After having been unable to move lower than 11.00 in the prior session, the share found buyers again around the same price level today at 10.94.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 9.55, downside momentum could speed up should the stock break out to new lows for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Its common bearish interpretation has been confirmed for SLM Solutions. Out of 62 times, AM3D.DE closed lower 51.61% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 58.06% with an average market move of -1.01%.