RKET.DE closes lower for the 4th day in a row
Rocket Internet SE (RKET.DE) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, RKET.DE ended the week -4.43% lower at 21.58 after losing €0.28 (-1.28%) today, notably underperforming the DAX (-0.21%). Today's close at 21.58 marks the lowest recorded closing price since January 2nd. Trading €0.30 higher after the open, Rocket Internet was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (RKET.DE as at Dec 07, 2018):
Friday's trading range has been €0.74 (3.36%), that's slightly above the last trading month's daily average range of €0.74. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for RKET.DE.
Three candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and two bearish patterns, the Bearish Closing Marubozu and the Black Candle.
After having been unable to move lower than 21.52 in the prior session, the share found buyers again around the same price level today at 21.58. The last time this happened on Tuesday, RKET.DE actually lost -3.59% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 21.52 where further sell stops might get activated. With prices trading close to this year's low at 20.94, downside momentum could accelerate should the market break out to new lows for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Closing Marubozu" stand out. Its common bearish interpretation has been confirmed for Rocket Internet. Out of 5 times, RKET.DE closed lower 80.00% 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 80.00% with an average market move of -5.18%.