DBK.DE finds buyers again around 7.70
Deutsche Bank AG (DBK.DE) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
DBK.DE finished the week -4.47% lower at 7.70 after flat today, slightly outperforming the DAX (-0.21%). Trading €0.10 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on November 23rd, DBK.DE actually gained 4.77% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (DBK.DE as at Dec 07, 2018):
Friday's trading range has been €0.18 (2.31%), that's below the last trading month's daily average range of €0.27. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DBK.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, one bullish candlestick pattern matches today's price action, the Homing Pigeon.
After having been unable to move lower than 7.67 in the previous session, the market found buyers again around the same price level today at 7.70.
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 though might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 8.34.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 7.67 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Homing Pigeon" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for DeutscheBank. Out of 35 times, DBK.DE closed lower 54.29% 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 10 trading days, showing a win rate of 57.14% with an average market move of -0.88%.