DLG.DE runs into sellers again around 22.79
Dialog Semiconductor Plc (DLG.DE) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
DLG.DE ended the week -1.7% lower at 22.55 after gaining €0.32 (1.44%) today on low volume, outperforming the TecDAX (0.45%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (DLG.DE as at Dec 07, 2018):
Friday's trading range has been €0.61 (2.7%), that's far below the last trading month's daily average range of €0.94. 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 lower than usual for DLG.DE.
Two candlestick patterns are matching today's price action, the Homing Pigeon which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 22.14 (S1). After spiking up to 22.79 during the day, the share found resistance at the 20-day moving average at 22.68. After having been unable to move above 22.67 in the prior session, Dialog Semiconductor ran into sellers again around the same price level today, failing to move higher than 22.79. The last time this happened on November 28th, DLG.DE actually gained 1.96% on the following trading day.
Though the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might accelerate should prices move below the nearby swing low at 21.92 where further sell stops could get activated. Further selling might move prices lower should the market test November's close-by low at 21.16.
Among the five 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 Dialog Semiconductor. Out of 22 times, DLG.DE closed lower 54.55% 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 68.18% with an average market move of -0.55%.