EOAN.DE dominated by bears dragging the market lower throughout the day
E.ON SE (EOAN.DE) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, EOAN.DE ended the week -4.05% lower at 8.29 after losing €0.05 (-0.6%) today, slightly underperforming the DAX (-0.13%). Today's close at 8.29 marks the lowest recorded closing price since March 2nd. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 8.30, the share confirmed its breakout through the previous session low after trading up to €0.03 below it intraday.
Daily Candlestick Chart (EOAN.DE as at Oct 12, 2018):
Friday's trading range has been €0.16 (1.9%), that's slightly below the last trading month's daily average range of €0.17. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EOAN.DE.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day although might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 8.71.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. Its common bearish interpretation has been confirmed for E. ON. Out of 156 times, EOAN.DE closed lower 58.33% 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 60.90% with an average market move of -1.86%.