BAS.DE closes above its opening price after recovering from early selling pressure
BASF SE (BAS.DE) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BAS.DE ended the week -0.95% lower at 68.85 after losing €0.21 (-0.3%) today, slightly underperforming the DAX (0.02%). Trading up to €0.41 lower after the open, BASF managed to reverse during the session as bulls took control ending the day above 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 (BAS.DE as at Nov 09, 2018):
Friday's trading range has been €1.07 (1.56%), that's below the last trading month's daily average range of €1.41. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for BAS.DE.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on October 29th, BAS.DE actually lost -0.72% on the following trading day.
Prices are trading close to the key technical support level at 68.73 (S1).
Though the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the nearby swing high at 70.26 where further buy stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for BASF. Out of 249 times, BAS.DE closed higher 50.60% 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 59.44% with an average market move of 0.97%.