SFQ.DE declines to lowest close since October 26th
SAF-Holland (SFQ.DE) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, SFQ.DE finished the week -7.23% lower at 11.93 after losing €0.11 (-0.91%) today, underperforming the SDAX (-0.09%). Today's close at 11.93 marks the lowest recorded closing price since October 26th. Closing below Thursday's low at 11.95, SAF-Holland confirmed its breakout through the prior session low after trading up to €0.13 below it intraday.
Daily Candlestick Chart (SFQ.DE as at Dec 07, 2018):
Friday's trading range has been €0.44 (3.63%), that's slightly above the last trading month's daily average range of €0.43. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SFQ.DE.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar.
Prices broke below the key technical support level at 12.00 (now R1), which is likely to act as resistance going forward. The last time this happened on Tuesday, SFQ.DE lost -2.15% on the following trading day. After having been unable to move above 12.25 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 12.26.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 12.66.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for SAF-Holland. Out of 133 times, SFQ.DE closed higher 51.88% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.90% with an average market move of 3.96%.