RKET.DE ends the day indecisive
Rocket Internet SE (RKET.DE) Technical Analysis Report for Oct 12, 2018
RKET.DE ended the week -7.31% lower at 25.36 after gaining €0.36 (1.44%) today. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (RKET.DE as at Oct 12, 2018):
Friday's trading range has been €0.76 (2.97%), that's slightly below the last trading month's daily average range of €0.89. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for RKET.DE.
One bullish candlestick pattern matches today's price action, the Hammer.
Prices are trading close to the key technical resistance level at 25.84 (R1).
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 26.80. The last time this happened on September 19th, RKET.DE gained 0.67% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hammer" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Rocket Internet. Out of 17 times, RKET.DE closed lower 82.35% 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 10 trading days, showing a win rate of 58.82% with an average market move of -2.71%.