PSM.DE closes lower for the 2nd day in a row
ProSiebenSat.1 Media SE (PSM.DE) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PSM.DE ended the week 8.18% higher at 15.74 after edging lower €0.02 (-0.13%) today on low volume, but still slightly outperforming the DAX (-0.31%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (PSM.DE as at Jan 11, 2019):
Friday's trading range has been €0.27 (1.73%), that's far below the last trading month's daily average range of €0.54. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PSM.DE.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on January 4th, PSM.DE gained 3.51% on the following trading day.
Prices are trading close to the key technical support level at 15.70 (S1). After having been unable to move lower than 15.61 in the prior session, the market found buyers again around the same price level today at 15.57.
While Pro7Sat1 is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 16.12 where further buy stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Pro7Sat1. Out of 296 times, PSM.DE closed higher 53.38% 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 58.45% with an average market move of 1.63%.