BAS.DE finds buyers again around 83.95
BASF SE (BAS.DE) Technical Analysis Report for Apr 16, 2018 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BAS.DE ended Monday at 84.19 edging higher €0.07 (0.08%) on low volume. Today's closing price of 84.19 marks the highest close since April 5th. Trading €0.27 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session. 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 Apr 16, 2018):
Monday's trading range was €0.71 (0.84%), that's far below last trading month's daily average range of €1.37. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being below average.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
After trading as low as 83.95 during the day, BASF bounced off the key support level at 84.08. The failure to close below the support could increase that levels importance as support going forward. After having been unable to move lower than 83.88 in the previous session, the share found buyers again around the same price level today at 83.95.
Though the market is experiencing a short-term up trend, this might just be a correction, as both the medium and long term trends are still in negative territory.
Buying could speed up should prices move above the nearby swing high at 84.91 where further buy stops might get activated. Further buying could move prices higher should the market test March's close-by high at 86.52.