HHFA.DE finds buyers at key support level
Hamburger Hafen und Logistik (HHFA.DE) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
HHFA.DE finished the week -2.97% lower at 18.94 after flat today on low volume, slightly outperforming the SDAX (-0.47%). Trading up to €0.17 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on October 26th, HHFA.DE gained 1.18% on the following trading day. 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 (HHFA.DE as at Nov 09, 2018):
Friday's trading range has been €0.41 (2.18%), that's far below the last trading month's daily average range of €0.62. 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 lower than usual for HHFA.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.
After trading down to 18.64 earlier during the day, the stock bounced off the key technical support level at 18.66 (S1). The failure to close below the support could increase that levels importance as support going forward.
Though Hamburger Hafen is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could accelerate should prices move below the nearby swing low at 18.37 where further sell stops might get activated. Further selling could move prices lower should the market test October's close-by low at 18.10.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Hamburger Hafen. Out of 436 times, HHFA.DE closed higher 57.11% 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 53.67% with an average market move of 0.30%.