GBF.DE closes lower for the 4th day in a row
Bilfinger (GBF.DE) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, GBF.DE ended the week -8.43% lower at 26.50 after edging lower €0.04 (-0.15%) today, slightly underperforming the SDAX (-0.09%). Today's close at 26.50 marks the lowest recorded closing price since September 2, 2016. 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 (GBF.DE as at Dec 07, 2018):
Friday's trading range has been €0.72 (2.67%), that's far below the last trading month's daily average range of €1.50. 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 significantly higher than usual for GBF.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.
Prices are trading close to the key technical support level at 26.30 (S1). After having been unable to move lower than 26.30 in the previous session, the stock found buyers again around the same price level today at 26.44. The last time this happened on Tuesday, GBF.DE actually lost -5.14% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 26.30 where further sell stops might get triggered.
Among the seven 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 Bilfinger. Out of 83 times, GBF.DE closed higher 51.81% 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 59.04% with an average market move of 0.93%.