SKB.DE closes below its opening price unable to hold early session gains
Koenig & Bauer (SKB.DE) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SKB.DE finished the week -6.57% lower at 38.12 after losing €0.50 (-1.29%) today, notably underperforming the SDAX (-0.09%). Today's close at 38.12 marks the lowest recorded closing price since May 11, 2016. Trading €0.50 higher after the open, Koenig & was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 38.22, the stock confirmed its breakout through the previous session low after trading up to €0.20 below it intraday.
Daily Candlestick Chart (SKB.DE as at Dec 07, 2018):
Friday's trading range has been €1.24 (3.2%), that's far below the last trading month's daily average range of €1.77. 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 SKB.DE.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
After having been unable to move lower than 38.22 in the prior session, the market found buyers again around the same price level today at 38.02. The last time this happened on Wednesday, SKB.DE actually lost -5.11% on the following trading day.
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 although could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 41.96.
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 Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Koenig &. Out of 127 times, SKB.DE closed higher 49.61% 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 61.42% with an average market move of 2.74%.