GMM.DE breaks below Thursday's low
Grammer AG (GMM.DE) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, GMM.DE ended the week 0.69% higher at 38.04 after losing €0.32 (-0.83%) today, slightly underperforming the SDAX (-0.48%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 38.34, the market confirmed its breakout through the previous session low after trading up to €0.32 below it intraday.
Daily Candlestick Chart (GMM.DE as at Jan 11, 2019):
Friday's trading range has been €0.78 (2.01%), that's below the last trading month's daily average range of €1.21. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GMM.DE.
One bearish candlestick pattern matches today's price action, the Black Candle.
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 nearby swing high at 39.14 where further buy stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Grammer AG. Out of 148 times, GMM.DE closed higher 59.46% 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 53.38% with an average market move of 1.71%.