NOEJ.DE crashes, losing €3.40 (-6.29%) within a single day
Norma Group (NOEJ.DE) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
NOEJ.DE ended the week 1.46% higher at 50.65 after tanking €3.40 (-6.29%) today, strongly underperforming the MDAX (-0.64%). This is the biggest single-day loss in over three months. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 51.05, the share confirmed its breakout through the prior session low after trading up to €0.75 below it intraday.
Daily Candlestick Chart (NOEJ.DE as at Nov 09, 2018):
Friday's trading range has been €3.60 (6.68%), that's far above the last trading month's daily average range of €2.36. 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 NOEJ.DE.
Two candlestick patterns are matching today's price action, the Bearish Belt-hold and the Black Candle which are both known as bearish patterns. The last time a Bearish Belt-hold showed up on August 31st, NOEJ.DE lost -3.77% on the following trading day.
Prices are trading close to the key technical support level at 49.58 (S1). Norma Group closed back below the 50-day moving average at 51.98.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 47.40.
While the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might accelerate should prices move below the nearby swing low at 48.92 where further sell stops could get triggered.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 50" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Norma Group. Out of 67 times, NOEJ.DE closed higher 56.72% 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 67.16% with an average market move of 2.07%.