GWI1.DE closes within prior day's range
Gerry Weber International (GWI1.DE) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
GWI1.DE finished the week 8.02% higher at 2.56 after losing €0.06 (-2.29%) today, strongly underperforming the SDAX (-0.48%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (GWI1.DE as at Jan 11, 2019):
Friday's trading range has been €0.31 (12.11%), that's above the last trading month's daily average range of €0.24. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for GWI1.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, four candlestick patterns are matching today's price action, the Gravestone Doji, the Northern Doji and the Shooting Star which are known as bearish patterns and one neutral pattern, the Doji. The last time a Doji showed up on October 8, 2018, GWI1.DE lost -6.67% on the following trading day.
Prices are trading close to the key technical support level at 2.52 (S1). After having been unable to move above 2.88 in the previous session, Gerry Weber ran into sellers again around the same price level today, missing to move higher than 2.85.
Though the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Gravestone Doji" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Gerry Weber. Out of 32 times, GWI1.DE closed higher 50.00% 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 59.38% with an average market move of 1.71%.