AM3D.DE breaks below Thursday's low
SLM Solutions Group AG (AM3D.DE) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
AM3D.DE finished the week 0.83% higher at 9.75 after losing €0.49 (-4.79%) today, notably underperforming the TecDAX (-0.54%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 9.79, the market confirmed its breakout through the prior session low after trading up to €0.13 below it intraday.
Daily Candlestick Chart (AM3D.DE as at Jan 11, 2019):
Friday's trading range has been €0.64 (6.24%), that's slightly below the last trading month's daily average range of €0.75. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AM3D.DE.
Notwithstanding a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 9.55 (S1). SLM Solutions closed back below the 20-day moving average at 10.09. After having been unable to move above 10.32 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 10.30. The last time this happened on January 3rd, AM3D.DE actually gained 5.11% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 10.32 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 9.59 where further sell stops might get triggered. 2018's low at 8.52 is within reach and we could see further downside momentum should AM3D.DE break out beyond.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Its common bearish interpretation has been confirmed for SLM Solutions. Out of 62 times, AM3D.DE closed lower 48.39% 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 54.84% with an average market move of -0.27%.