HLE.DE climbs to highest close since November 27, 2018
Hella KGaA Hueck & Co. (HLE.DE) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
HLE.DE ended the week 10.42% higher at 39.20 after surging €1.88 (5.04%) today on high volume, strongly outperforming the MDAX (-0.18%). This is the biggest single-day gain in over a month. Today's close at 39.20 marks the highest recorded closing price since November 27, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (HLE.DE as at Jan 11, 2019):
Friday's trading range has been €2.46 (6.56%), that's far above the last trading month's daily average range of €1.39. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HLE.DE.
One bullish candlestick pattern matches today's price action, the White Candle.
Hella KGaA managed to close back above the 50-day moving average at 37.77. When this moving average was crossed above the last time on Wednesday, HLE.DE actually lost -2.15% on the following trading day.
Crossing above the upper Bollinger Band for the first time since Wednesday, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 35.45 or signal the beginning of a strong momentum breakout leading to even higher prices.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. Its common bullish interpretation has been confirmed for Hella KGaA. Out of 56 times, HLE.DE closed higher 57.14% 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 60.71% with an average market move of 0.72%.