BEI.DE fails to close above 20-day moving average
Beiersdorf AG (BEI.DE) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, BEI.DE finished the week 1.02% higher at 87.00 after gaining €0.14 (0.16%) today, underperforming the DAX (0.85%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (BEI.DE as at Mar 15, 2019):
Friday's trading range has been €1.02 (1.17%), that's below the last trading month's daily average range of €1.34. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for BEI.DE.
Five candlestick patterns are matching today's price action, the Bearish Doji Star and the Northern Doji which are both known as bearish patterns and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man.
After spiking up to 87.52 during the day, Beiersdorf found resistance at the 20-day moving average at 87.18. The last time this happened on November 12, 2018, BEI.DE actually gained 1.07% on the following trading day.
While the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Long-Legged Doji" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Beiersdorf. Out of 35 times, BEI.DE closed higher 57.14% 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 54.29% with an average market move of 0.52%.