DRI.DE breaks below Tuesday's low
1&1 Drillisch (DRI.DE) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
DRI.DE finished Wednesday at 34.12 losing €0.28 (-0.81%), significantly underperforming the MDAX (0.61%). Today's close at 34.12 marks the lowest recorded closing price since July 20, 2016. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 34.18, the share confirmed its breakout through the previous session low after trading up to €0.08 below it intraday.
Daily Candlestick Chart (DRI.DE as at Feb 13, 2019):
Wednesday's trading range has been €0.52 (1.51%), that's below the last trading month's daily average range of €1.13. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for DRI.DE.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on December 10, 2018, DRI.DE actually gained 2.86% on the following trading day.
Unable to break through the key technical resistance level at 34.56 (R1), the stock closed below it after spiking up to 34.62 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.1&1 Drillisch found buyers again today around 34.10 for the third trading day in a row after having found demand at 34.18 in the prior session and at 34.14 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 35.20 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 33.86 where further sell stops could get triggered.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for 1&1 Drillisch. Out of 789 times, DRI.DE closed higher 52.09% 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 64.39% with an average market move of 1.85%.