GLJ.DE unable to break through key resistance level
Grenke (GLJ.DE) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
GLJ.DE finished the week -1.34% lower at 73.60 after edging lower €0.20 (-0.27%) today on high volume, but still slightly outperforming the SDAX (-0.48%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (GLJ.DE as at Jan 11, 2019):
Friday's trading range has been €1.00 (1.35%), that's far below the last trading month's daily average range of €2.47. 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 GLJ.DE.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Unable to break through the key technical resistance level at 74.00 (R1), Grenke closed below it after spiking up to 74.15 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on December 18, 2018, GLJ.DE lost -0.75% on the following trading day. After having been unable to move above 74.25 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 74.15.
Although the share 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 74.25 where further buy stops might get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Grenke. Out of 807 times, GLJ.DE closed higher 48.20% 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 59.48% with an average market move of 1.12%.