LIN.DE misses to close above 50-day moving average
Linde AG (LIN.DE) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
LIN.DE finished the week -2.55% lower at 174.05 after gaining €0.55 (0.32%) today, slightly outperforming the DAX (-0.13%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (LIN.DE as at Oct 12, 2018):
Friday's trading range has been €3.00 (1.71%), that's slightly above the last trading month's daily average range of €2.87. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LIN.DE.
Prices are trading close to the key technical support level at 172.60 (S1). After spiking up to 176.00 during the day, the market found resistance at the 50-day moving average at 175.54. The last time this happened on September 14th, LIN.DE lost -0.97% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 172.00 where further sell stops could get triggered. Trading close to August's low at 170.10 we might see further downside momentum if potential sell stops at the level get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Close to S1 Support" stand out. Its common bullish interpretation has been confirmed for Linde. Out of 1,353 times, LIN.DE closed higher 53.22% 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 56.02% with an average market move of 0.65%.