LHA.DE stuck within tight trading range
Deutsche Lufthansa AG (LHA.DE) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
LHA.DE ended Wednesday at 22.21 gaining €0.14 (0.63%), slightly outperforming the DAX (0.37%). Trading up to €0.14 lower after the open, Lufthansa managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (LHA.DE as at Feb 13, 2019):
Wednesday's trading range has been €0.26 (1.17%), that's far below the last trading month's daily average range of €0.46. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LHA.DE. Prices continued to consolidate within a tight trading range between 21.99 and 22.47 where it has been caught now for the last three trading days.
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 moving lower in the prior session, the share managed to close higher but below the previous day's open, forming a bullish Harami Candle. The last time this candlestick pattern showed up on October 31, 2018, LHA.DE gained 7.32% on the following trading day. Additionally, three candlestick patterns are matching today's price action, the Bullish Harami Cross Pattern which is known as bullish pattern, one bearish pattern, the Northern Doji and one neutral pattern, the Doji.
Prices are trading close to the key technical resistance level at 22.47 (R1). The market found buyers again today around 22.06 for the third trading day in a row after having found demand at 21.99 in the prior session and at 21.99 two days ago.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the close-by swing high at 22.47 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 21.68 where further sell stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Cross Pattern" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Lufthansa. Out of 4 times, LHA.DE closed lower 75.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after two trading days, showing a win rate of 75.00% with an average market move of -0.34%.