O2D.DE runs into sellers around 2.96 for the third day in a row
Telefónica Germany (O2D.DE) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, O2D.DE finished Wednesday at 2.96 gaining €0.03 (1.02%), slightly outperforming the MDAX (0.61%). Trading up to €0.03 lower after the open, Telefónica Germany managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Tuesday's high at 2.95, the market confirmed its breakout through the previous session high after trading up to €0.01 above it intraday.
Daily Candlestick Chart (O2D.DE as at Feb 13, 2019):
Wednesday's trading range has been €0.05 (1.7%), that's below the last trading month's daily average range of €0.06. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for O2D.DE.
One bullish candlestick pattern matches today's price action, the Tweezer Bottom.
Prices are trading close to the key technical resistance level at 2.97 (R1). The share ran into sellers again today around 2.96 for the third trading day in a row after having found sellers at 2.95 in the prior session and at 2.95 two days ago.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 3.03. The last time this happened on January 15th, O2D.DE actually lost -1.62% 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 2.89 where further sell stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Tweezer Bottom" stand out. Its common bullish interpretation has been confirmed for Telefónica Germany. Out of 67 times, O2D.DE closed higher 55.22% 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 58.21% with an average market move of 0.12%.