SRT.DE closes below its opening price unable to hold early session gains
Sartorius AG (SRT.DE) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SRT.DE ended the week -1.29% lower at 115.00 after losing €1.00 (-0.86%) today, slightly underperforming the MDAX (-0.64%). Trading €1.50 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (SRT.DE as at Nov 09, 2018):
Friday's trading range has been €2.50 (2.16%), that's far below the last trading month's daily average range of €4.47. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SRT.DE.
Unable to break through the key technical resistance level at 116.00 (R1), the share closed below it after spiking up to 117.50 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move lower than 115.00 in the prior session, the market found buyers again around the same price level today at 115.00. The last time this happened on Wednesday, SRT.DE actually lost -2.11% on the following trading day.
Sartorius AG shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Sartorius AG. Out of 153 times, SRT.DE closed higher 57.52% 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 73.20% with an average market move of 3.95%.