DWNI.DE finds buyers around 42.33 for the third day in a row
Deutsche Wohnen AG (DWNI.DE) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
DWNI.DE ended Wednesday at 42.33 losing €0.15 (-0.35%), underperforming the MDAX (0.61%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 42.34, the market confirmed its breakout through the previous session low after trading up to €0.01 below it intraday.
Daily Candlestick Chart (DWNI.DE as at Feb 13, 2019):
Wednesday's trading range has been €0.36 (0.84%), that's far below the last trading month's daily average range of €0.59. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DWNI.DE.
Three candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle. The last time a Last Engulfing Bottom Pattern showed up on November 19, 2018, DWNI.DE actually lost -0.74% on the following trading day.
Prices are trading close to the key technical resistance level at 42.62 (R1). The stock found buyers again today around 42.33 for the third trading day in a row after having found demand at 42.34 in the prior session and at 42.30 two days ago.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could accelerate should prices move below the close-by swing low at 42.02 where further sell stops might get activated.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for Deutsche Wohnen. Out of 69 times, DWNI.DE closed higher 53.62% 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 65.22% with an average market move of 2.24%.