G1A.DE closes below its opening price unable to hold early session gains
GEA Group (G1A.DE) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, G1A.DE finished the week -6.59% lower at 22.27 after losing €0.12 (-0.54%) today, underperforming the MDAX (0.39%). Today's close at 22.27 marks the lowest recorded closing price since September 6, 2012. Trading €0.25 higher after the open, GEA Group was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 22.35, the share confirmed its breakout through the previous session low after trading up to €0.10 below it intraday.
Daily Candlestick Chart (G1A.DE as at Dec 07, 2018):
Friday's trading range has been €0.45 (2.0%), that's far below the last trading month's daily average range of €1.04. 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 G1A.DE.
Prices are trading close to the key technical resistance level at 22.92 (R1). After having been unable to move lower than 22.35 in the prior session, the market found buyers again around the same price level today at 22.25. The last time this happened on November 22nd, G1A.DE actually lost -10.10% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 21.66, downside momentum could speed up should the stock break out to new lows for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for GEA Group. Out of 369 times, G1A.DE closed higher 52.85% 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 52.03% with an average market move of 0.42%.