SZG.DE tanks, losing €1.73 (-4.8%) within a single day on high volume
Salzgitter AG (SZG.DE) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, SZG.DE ended the week -5.92% lower at 34.30 after tanking €1.73 (-4.8%) today on high volume, strongly underperforming the MDAX (-0.64%). This is the biggest single-day loss in over two weeks. The last time we've seen such an unusually strong single-day loss on October 24th, SZG.DE lost -0.69% on the following trading day. Today's close at 34.30 marks the lowest recorded closing price since June 21, 2017.
Daily Candlestick Chart (SZG.DE as at Nov 09, 2018):
Friday's trading range has been €1.43 (4.09%), that's above the last trading month's daily average range of €1.14. 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 lower than usual for SZG.DE.
After trading down to 33.66 earlier during the day, the stock bounced off the key technical support level at 33.69 (S1). The failure to close below the support could increase that levels importance as support going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week Low" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Salzgitter AG. Out of 57 times, SZG.DE closed higher 59.65% 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 59.65% with an average market move of 2.80%.