DTE.DE pushes through key technical resistance level
Deutsche Telekom AG (DTE.DE) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, DTE.DE finished the week 4.04% higher at 15.46 after surging €0.27 (1.78%) today on high volume, outperforming the DAX (0.85%). This is the biggest single-day gain in over a month. Today's close at 15.46 marks the highest recorded closing price since November 30, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 15.27, Telekom confirmed its breakout through the previous session high after trading up to €0.19 above it intraday.
Daily Candlestick Chart (DTE.DE as at Mar 15, 2019):
Friday's trading range has been €0.30 (1.97%), that's far above the last trading month's daily average range of €0.18. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for DTE.DE.
Two candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns. The last time a Bullish Closing Marubozu showed up on January 18th, DTE.DE actually lost -2.42% on the following trading day.
Buyers managed to take out the key technical resistance level at 15.27 (now S1), which is likely to act as support going forward.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 14.74.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2018's high at 15.60 is within reach and we could see further upside momentum should the stock manage to break out beyond.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Closing Marubozu" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Telekom. Out of 85 times, DTE.DE closed lower 61.18% 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 56.47% with an average market move of -0.62%.