GBF.DE finds buyers around 30.88 for the third day in a row
Bilfinger (GBF.DE) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
GBF.DE finished the week -0.26% lower at 31.06 after gaining €0.10 (0.32%) today, slightly underperforming the SDAX (0.65%). 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 (GBF.DE as at Mar 15, 2019):
Friday's trading range has been €0.32 (1.03%), that's far below the last trading month's daily average range of €0.96. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for GBF.DE.
One bullish candlestick pattern matches today's price action, the Hammer. The last time a Hammer showed up on December 3, 2018, GBF.DE actually lost -2.28% on the following trading day.
Prices are trading close to the key technical support level at 30.64 (S1). The market found buyers again today around 30.88 for the third trading day in a row after having found demand at 30.80 in the prior session and at 30.80 two days ago.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the close-by swing high at 31.78 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 30.48 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hammer" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Bilfinger. Out of 27 times, GBF.DE closed lower 70.37% 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 55.56% with an average market move of -1.54%.