GFT.DE runs into sellers again around 8.01
GFT Technologies SE (GFT.DE) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GFT.DE finished the week 11.21% higher at 7.84 after edging higher €0.02 (0.26%) today on low volume, outperforming the TecDAX (-0.54%). Today's close at 7.84 marks the highest recorded closing price since December 4, 2018. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (GFT.DE as at Jan 11, 2019):
Friday's trading range has been €0.25 (3.14%), that's below the last trading month's daily average range of €0.35. 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 lower than usual for GFT.DE.
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 7.56 (S1). After having been unable to move above 8.00 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 8.01. The last time this happened on January 4th, GFT.DE actually gained 6.52% on the following trading day.
Though GFT Technologies is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the close-by swing high at 8.10 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 7.56 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for GFT Technologies. Out of 625 times, GFT.DE closed higher 54.24% 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 56.64% with an average market move of 1.31%.