SFQ.DE closes above its opening price after recovering from early selling pressure
SAF-Holland (SFQ.DE) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
SFQ.DE ended the week 6.14% higher at 11.23 after flat today, slightly outperforming the SDAX (-0.48%). Trading up to €0.23 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SFQ.DE as at Jan 11, 2019):
Friday's trading range has been €0.28 (2.5%), that's below the last trading month's daily average range of €0.40. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for SFQ.DE.
Three candlestick patterns are matching today's price action, the Hanging Man and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji. The last time a Hanging Man showed up on November 8, 2018, SFQ.DE lost -2.20% on the following trading day.
After trading as low as 10.99 during the day, SAF-Holland found support at the 20-day moving average at 11.09. Prices are trading close to the key technical resistance level at 11.34 (R1).
While the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for SAF-Holland. Out of 78 times, SFQ.DE closed higher 56.41% 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 56.41% with an average market move of 2.69%.