DBK.DE finds support at 50-day moving average
Deutsche Bank AG (DBK.DE) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DBK.DE finished the week 1.82% higher at 7.82 after losing €0.07 (-0.89%) today on high volume, significantly underperforming the DAX (0.85%). Closing below Thursday's low at 7.86, DeutscheBank confirmed its breakout through the prior session low after trading up to €0.11 below it intraday.
Daily Candlestick Chart (DBK.DE as at Mar 15, 2019):
Friday's trading range has been €0.18 (2.27%), that's below the last trading month's daily average range of €0.25. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DBK.DE.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 7.75 during the day, the market found support at the 50-day moving average at 7.78. The last time this happened on March 7th, DBK.DE actually lost -0.90% on the following trading day. The stock closed back below the 20-day moving average at 7.88 for the first time since March 8th.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the nearby swing high at 8.03 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 7.60 where further sell stops might get triggered. With prices trading close to this year's high at 8.32, upside momentum could accelerate should DBK.DE be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 50" 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 57.14% 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 -2.03%.