SKB.DE closes above its opening price after recovering from early selling pressure
Koenig & Bauer (SKB.DE) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
SKB.DE ended the week -2.02% lower at 42.72 after gaining €1.06 (2.54%) today, notably outperforming the SDAX (-0.47%). Trading up to €1.30 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on October 25th, SKB.DE actually lost -1.47% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SKB.DE as at Nov 09, 2018):
Friday's trading range has been €2.48 (5.95%), that's slightly above the last trading month's daily average range of €2.19. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SKB.DE.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Though the stock 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 speed up should prices move above the close-by swing high at 44.64 where further buy stops might get activated. With prices trading close to this year's low at 39.70, downside momentum could accelerate should the market break out to new lows for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Koenig &. Out of 648 times, SKB.DE closed lower 54.17% 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 three trading days, showing a win rate of 54.32% with an average market move of -0.12%.