EVT.DE unable to break through key resistance level
Evotec (EVT.DE) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
EVT.DE finished the week 3.98% higher at 21.15 after edging lower €0.04 (-0.19%) today, underperforming the MDAX (0.5%). Trading €0.14 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, EVT.DE actually gained 1.73% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (EVT.DE as at Mar 15, 2019):
Friday's trading range has been €0.33 (1.55%), that's far below the last trading month's daily average range of €0.54. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EVT.DE.
In spite of a strong opening the stock closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Unable to break through the key technical resistance level at 21.35 (R1), the share closed below it after spiking up to 21.38 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
Although Evotec 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 nearby swing low at 20.63 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Evotec. Out of 174 times, EVT.DE closed higher 52.30% 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 59.20% with an average market move of 2.31%.