SHA.DE misses to close above 20-day moving average
Schaeffler Technologies AG & Co. KG (SHA.DE) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SHA.DE finished Wednesday at 7.70 gaining €0.20 (2.67%), significantly outperforming the MDAX (0.61%). Closing above Tuesday's high at 7.66, the share confirmed its breakout through the previous session high after trading up to €0.11 above it intraday.
Daily Candlestick Chart (SHA.DE as at Feb 13, 2019):
Wednesday's trading range has been €0.22 (2.91%), that's slightly below the last trading month's daily average range of €0.23. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SHA.DE.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on January 24th, SHA.DE gained 3.72% on the following trading day.
The stock managed to close back above the 50-day moving average at 7.55 for the first time since February 6th. After spiking up to 7.77 during the day, the market found resistance at the 20-day moving average at 7.71.
Schaeffler Technologies shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 7.88 where further buy stops could get activated. With prices trading close to this year's low at 7.25, downside momentum might speed up should SHA.DE break out to new lows for the year. As prices are trading close to February's high at 7.93, upside momentum could accelerate should the share mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Its common bearish interpretation has been confirmed for Schaeffler Technologies. Out of 29 times, SHA.DE closed lower 55.17% 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 65.52% with an average market move of -2.58%.