FRE.DE closes within prior day's range after lackluster session
Fresenius SE & Co. KGaA (FRE.DE) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
FRE.DE ended Wednesday at 46.89 edging lower €0.13 (-0.28%) on low volume, underperforming the DAX (0.37%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (FRE.DE as at Feb 13, 2019):
Wednesday's trading range has been €0.81 (1.71%), that's below the last trading month's daily average range of €1.26. 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 higher than usual for FRE.DE.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on January 29th, FRE.DE actually gained 3.16% on the following trading day.
Prices are trading close to the key technical resistance level at 47.80 (R1).
Though the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 47.80 where further buy stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Fresenius. Out of 83 times, FRE.DE closed higher 56.63% 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 61.45% with an average market move of 1.69%.