NEM.DE closes below its opening price unable to hold early session gains
Nemetschek (NEM.DE) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, NEM.DE finished the week -6.54% lower at 100.10 after edging lower €0.10 (-0.1%) today, slightly underperforming the MDAX (0.39%). Trading €3.20 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on November 29th, NEM.DE actually gained 0.09% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NEM.DE as at Dec 07, 2018):
Friday's trading range has been €4.75 (4.69%), that's slightly above the last trading month's daily average range of €4.67. 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 NEM.DE.
Prices are trading close to the key technical support level at 98.30 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 97.90 where further sell stops might get triggered. Further selling could move prices lower should the market test November's close-by low at 93.80.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Nemetschek. Out of 52 times, NEM.DE closed higher 50.00% 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 69.23% with an average market move of 2.70%.