DPW.DE closes within prior day's range after lackluster session
Deutsche Post AG (DPW.DE) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
DPW.DE ended the week -4.86% lower at 28.22 after edging higher €0.03 (0.11%) today, slightly outperforming the DAX (-0.13%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (DPW.DE as at Oct 12, 2018):
Friday's trading range has been €0.46 (1.62%), that's below the last trading month's daily average range of €0.56. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for DPW.DE.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on September 11th, DPW.DE actually gained 1.37% on the following trading day.
Prices are trading close to the key technical support level at 27.97 (S1). After having been unable to move lower than 28.17 in the previous session, the market found buyers again around the same price level today at 28.12.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 30.48.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 27.23, downside momentum could speed up should DeutschePost break out to new lows for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for DeutschePost. Out of 515 times, DPW.DE closed higher 52.43% 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 59.22% with an average market move of 0.54%.