SIE.DE slides to lowest close since August 3, 2016
Siemens Aktiengesellschaft (SIE.DE) Technical Analysis Report for Oct 12, 2018
Moving lower for the 8th day in a row, SIE.DE finished the week -5.35% lower at 99.76 after losing €0.74 (-0.74%) today, underperforming the DAX (-0.13%). Today's close at 99.76 marks the lowest recorded closing price since August 3, 2016. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 100.18, the market confirmed its breakout through the previous session low after trading up to €0.45 below it intraday.
Daily Candlestick Chart (SIE.DE as at Oct 12, 2018):
Friday's trading range has been €2.69 (2.64%), that's far above the last trading month's daily average range of €1.45. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for SIE.DE.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. The last time this happened on August 15th, SIE.DE actually gained 0.29% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
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 though could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 107.76.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week Low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Siemens. Out of 26 times, SIE.DE closed higher 65.38% 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 88.46% with an average market move of 4.56%.