LEG.DE unable to break through key resistance level
LEG Immobilien (LEG.DE) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
LEG.DE ended the week 3.39% higher at 101.45 after gaining €0.35 (0.35%) today on high volume, outperforming the MDAX (-0.64%). Today's close at 101.45 marks the highest recorded closing price since October 1st. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (LEG.DE as at Nov 09, 2018):
Friday's trading range has been €2.71 (2.71%), that's far above the last trading month's daily average range of €1.97. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LEG.DE.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 102.15 (R1), the stock closed below it after spiking up to 102.25 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on Monday, LEG.DE actually gained 1.71% on the following trading day.
LEG Immobilien shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Further buying might move prices higher should the market test October's close-by high at 102.55.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for LEG Immobilien. Out of 190 times, LEG.DE closed higher 53.16% 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 66.84% with an average market move of 1.33%.