DBK.DE breaks back below 20-day moving average
Deutsche Bank AG (DBK.DE) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DBK.DE ended the week -2.5% lower at 8.96 after losing €0.20 (-2.18%) today, significantly underperforming the DAX (0.02%).
Daily Candlestick Chart (DBK.DE as at Nov 09, 2018):
Friday's trading range has been €0.22 (2.42%), that's slightly below the last trading month's daily average range of €0.24. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DBK.DE.
One bearish candlestick pattern matches today's price action, the Black Candle.
DeutscheBank closed back below the 20-day moving average at 9.12. When this moving average was crossed below the last time on September 28th, DBK.DE lost -1.22% on the following trading day.
Although 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 five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Its common bearish interpretation has been confirmed for DeutscheBank. Out of 125 times, DBK.DE closed lower 52.80% 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 four trading days, showing a win rate of 57.60% with an average market move of -0.17%.