DB1.DE runs into sellers again around 110.90
Deutsche Börse AG (DB1.DE) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
DB1.DE finished the week -5.22% lower at 109.90 after gaining €0.95 (0.87%) today, outperforming the DAX (-0.13%). Trading €0.95 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 missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DB1.DE as at Oct 12, 2018):
Friday's trading range has been €1.60 (1.46%), that's slightly below the last trading month's daily average range of €1.81. 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 strongly higher than usual for DB1.DE.
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. Additionally, four candlestick patterns are matching today's price action, the Bullish Harami Cross Pattern, the Homing Pigeon and the Southern Doji which are known as bullish patterns and one neutral pattern, the Doji.
Prices are trading close to the key technical support level at 108.90 (S1). After having been unable to move above 110.95 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 110.90. The last time this happened on Wednesday, DB1.DE lost -2.64% on the following trading day.
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 while could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 115.38.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 108.90 where further sell stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Cross Pattern" stand out. Its common bullish interpretation has been confirmed for DB1. Out of 8 times, DB1.DE closed higher 75.00% 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 62.50% with an average market move of 4.64%.