IGY.DE finds buyers at key support level
Innogy SE (IGY.DE) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
IGY.DE finished the week -1.34% lower at 40.50 after losing €0.13 (-0.32%) today, slightly underperforming the MDAX (-0.18%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (IGY.DE as at Jan 11, 2019):
Friday's trading range has been €0.39 (0.96%), that's slightly below the last trading month's daily average range of €0.52. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IGY.DE. Prices continued to consolidate within a tight trading range between 40.32 and 40.76 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. The last time this happened on November 2, 2018, IGY.DE actually gained 0.51% on the following trading day.
After trading down to 40.32 earlier during the day, the stock bounced off the key technical support level at 40.43 (S1). The failure to close below the support could increase that levels importance as support going forward. Prices are trading close to the key technical resistance level at 40.87 (R1). The share was bought again around 40.32 after having seen lows at 40.39, 40.35 and 40.40 in the last three trading sessions. Obviously there is something going on at that level.
While the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Innogy SE. Out of 32 times, IGY.DE closed higher 56.25% 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 56.25% with an average market move of 0.14%.