LHA.DE stuck within tight trading range

Deutsche Lufthansa AG (LHA.DE) Technical Analysis Report for May 17, 2018

Highlights

LHA.DE closes above its opening price after recovering from early selling pressure
LHA.DE finds buyers at key support level
LHA.DE ends the day on a bullish note closing near the high of the day
LHA.DE finds buyers again around 24.87
LHA.DE stuck within tight trading range

TQ Sentiment

Report Sentiment:
55% Bullish
Technical Forecast:

Overview

LHA.DE ended Thursday at 25.11 edging higher €0.01 (0.04%). Trading up to €0.23 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 prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session. Ending with a strong close near the high of the day sets a bullish note for the next session.

Daily chart for LHA.DE

Volatility

Thursday's trading range was €0.26 (1.04%), that's far below last trading month's daily average range of €0.63. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being slightly below average. Prices continued to consolidate within a tight trading range between 24.87 and 25.54 which it has been in now for the last three days.

Price Action

After moving lower in the prior session, the stock managed to close higher but below the previous day's open, forming a bullish Harami Candle.

Support/Resistance

After trading as low as 24.87 during the day, the market bounced off the key support level at 24.88. The failure to close below the support might increase that levels importance as support going forward. Prices are trading close to the key resistance level at 25.43. After having been unable to move lower than 24.87 in the prior session, the share found buyers again around the same price level today at 24.87.

Trend

Although LHA.DE is experiencing a short-term up trend, this could just be a correction, as both the medium and long term trends are still in negative territory.

Order Flow

Buying might accelerate should prices move above the nearby swing high at 25.54 where further buy stops could get triggered. With prices trading close to this year's low at 23.69, downside momentum might speed up should Lufthansa break out to new lows for the year.

Conclusion

While classical technical analysis indicates a neutral sentiment for the next trading day, our quantitative statistics show a different picture being bearish.

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