RWE.DE closes within previous day's range after lackluster session
RWE AG (RWE.DE) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, RWE.DE ended the week -6.26% lower at 17.52 after gaining €0.20 (1.15%) today, strongly outperforming the DAX (-0.13%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (RWE.DE as at Oct 12, 2018):
Friday's trading range has been €0.41 (2.34%), that's below the last trading month's daily average range of €0.60. 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 significantly higher than usual for RWE.DE.
Two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji.
After having been unable to move above 17.78 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 17.85.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Its common bearish interpretation has been confirmed for RWE. Out of 535 times, RWE.DE closed lower 51.03% 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 52.71% with an average market move of -0.58%.