B4B.DE breaks back above 100-day moving average
Metro AG (B4B.DE) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
B4B.DE ended the week -1.92% lower at 13.30 after surging €0.38 (2.94%) today on low volume, significantly outperforming the MDAX (0.39%). This is the biggest single-day gain in over three weeks. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (B4B.DE as at Dec 07, 2018):
Friday's trading range has been €0.46 (3.55%), that's above the last trading month's daily average range of €0.35. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for B4B.DE.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Belt-hold and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on Wednesday, B4B.DE actually lost -4.01% on the following trading day.
Metro AG managed to close back above the 100-day moving average at 13.03. Prices are trading close to the key technical resistance level at 13.59 (R1). After having been unable to move above 13.41 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 13.40.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 13.82.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might speed up should prices move above the close-by swing high at 13.64 where further buy stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Belt-hold" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Metro AG. Out of 5 times, B4B.DE closed lower 80.00% of the time on the next trading day after the market condition occurred.