SDF.DE breaks below Thursday's low
K+S AG (SDF.DE) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SDF.DE ended the week -0.63% lower at 17.28 after losing €0.29 (-1.65%) today, notably underperforming the MDAX (-0.64%). Closing below Thursday's low at 17.49, the share confirmed its breakout through the previous session low after trading up to €0.38 below it intraday.
Daily Candlestick Chart (SDF.DE as at Nov 09, 2018):
Friday's trading range has been €0.43 (2.45%), that's below the last trading month's daily average range of €0.60. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SDF.DE.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle. The last time a Bullish Hikkake Pattern showed up on October 23rd, SDF.DE actually lost -2.93% on the following trading day.
Though the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the nearby swing high at 17.81 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 17.05 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for K+S AG. Out of 126 times, SDF.DE closed lower 57.14% 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 53.97% with an average market move of -0.57%.