PBB.DE breaks below key technical support level
Deutsche Pfandbriefbank AG (PBB.DE) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
PBB.DE ended Wednesday at 9.99 losing €0.10 (-0.99%). Closing below Tuesday's low at 10.04, the share confirmed its breakout through the prior session low after trading up to €0.10 below it intraday.
Daily Candlestick Chart (PBB.DE as at Feb 13, 2019):
Wednesday's trading range has been €0.28 (2.76%), that's slightly above the last trading month's daily average range of €0.27. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for PBB.DE.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on January 15th, PBB.DE actually gained 2.86% on the following trading day. In spite of a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 10.08 (now R1), which is likely to act as resistance going forward.
While the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
With prices trading close to this year's high at 10.37, upside momentum could speed up should Deutsche Pfandbriefbank be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Deutsche Pfandbriefbank. Out of 40 times, PBB.DE closed higher 57.50% 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 47.50% with an average market move of 0.40%.