BVB.DE closes within prior day's range

Borussia Dortmund (BVB.DE) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team


BVB.DE closes below its opening price unable to hold early session gains
BVB.DE finds buyers again around 7.91
BVB.DE closes within previous day's range


BVB.DE ended the week -4.7% lower at 7.91 after edging higher €0.01 (0.13%) today on low volume, slightly outperforming the SDAX (-0.09%). Trading €0.22 higher after the open, Borussia Dortmund was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, BVB.DE lost -1.58% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.

Daily Candlestick Chart (BVB.DE as at Dec 07, 2018):

Daily technical analysis candlestick chart for Borussia Dortmund (BVB.DE) as at Dec 07, 2018

Friday's trading range has been €0.27 (3.39%), that's slightly below the last trading month's daily average range of €0.32. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for BVB.DE.

One bullish candlestick pattern matches today's price action, the Homing Pigeon.

Prices are trading close to the key technical support level at 7.86 (S1). After having been unable to move lower than 7.90 in the prior session, the share found buyers again around the same price level today at 7.91.

While the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.

Selling could accelerate should prices move below the close-by swing low at 7.90 where further sell stops might get triggered. Trading close to October's low at 7.40 we could see further downside momentum if potential sell stops at the level get activated.

Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Borussia Dortmund. Out of 271 times, BVB.DE closed higher 56.83% 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 59.78% with an average market move of 2.10%.

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