CAP.DE closes within previous day's range
Capital Stage (CAP.DE) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
CAP.DE ended the week 1.32% higher at 6.16 after flat today, slightly outperforming the SDAX (-0.47%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CAP.DE as at Nov 09, 2018):
Friday's trading range has been €0.13 (2.13%), that's slightly above the last trading month's daily average range of €0.13. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CAP.DE.
One bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on Tuesday, CAP.DE lost 0.00% on the following trading day.
Unable to break through the key technical resistance level at 6.18 (R1), the stock closed below it after spiking up to 6.22 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
Although Capital Stage is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the close-by swing high at 6.26 where further buy stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bearish for Capital Stage. Out of 752 times, CAP.DE closed lower 48.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after seven trading days, showing a win rate of 49.60% with an average market move of -0.01%.