RIB.DE closes below its opening price unable to hold early session gains
RIB Software SE (RIB.DE) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, RIB.DE finished Wednesday at 11.86 losing €0.14 (-1.17%), strongly underperforming the TecDAX (0.43%). Trading €0.24 higher after the open, RIB Software was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (RIB.DE as at Feb 13, 2019):
Wednesday's trading range has been €0.41 (3.41%), that's below the last trading month's daily average range of €0.58. 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 slightly lower than usual for RIB.DE.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Unable to break through the key technical resistance level at 12.21 (R1), the market closed below it after spiking up to 12.27 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move lower than 11.81 in the prior session, the stock found buyers again around the same price level today at 11.86. The last time this happened on February 6th, RIB.DE actually lost -6.67% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 11.31 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for RIB Software. Out of 282 times, RIB.DE closed lower 52.84% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after five trading days, showing a win rate of 49.65% with an average market move of -0.26%.