DTE.DE closes within previous day's range
Deutsche Telekom AG (DTE.DE) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
DTE.DE ended the week -2.39% lower at 15.11 after gaining €0.08 (0.53%) today on low volume, outperforming the DAX (-0.21%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (DTE.DE as at Dec 07, 2018):
Friday's trading range has been €0.18 (1.19%), that's slightly below the last trading month's daily average range of €0.21. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DTE.DE.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving lower in the prior session, the stock managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 15.06 earlier during the day, Telekom bounced off the key technical support level at 15.09 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on Wednesday, DTE.DE actually lost -1.89% on the following trading day.
Although 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 close-by swing low at 14.98 where further sell stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Telekom. Out of 458 times, DTE.DE closed higher 51.97% 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 54.80% with an average market move of 0.37%.