BEI.DE closes within prior day's range
Beiersdorf AG (BEI.DE) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
BEI.DE ended the week -4.74% lower at 89.62 after flat today on high volume. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BEI.DE as at Oct 12, 2018):
Friday's trading range has been €1.08 (1.2%), that's slightly below the last trading month's daily average range of €1.26. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for BEI.DE.
One bullish candlestick pattern matches today's price action, the Homing Pigeon.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 95.70.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Beiersdorf. Out of 143 times, BEI.DE closed higher 53.85% 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 65.03% with an average market move of 1.39%.