SZU.DE breaks back above 100-day moving average
Software AG (SZU.DE) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
SZU.DE finished the week 0.16% higher at 12.58 after gaining €0.14 (1.13%) today on low volume. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (SZU.DE as at Dec 07, 2018):
Friday's trading range has been €0.30 (2.4%), that's below the last trading month's daily average range of €0.41. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SZU.DE. Prices continued to consolidate within a tight trading range between 12.32 and 12.78 where it has been caught now for the last three trading days.
After moving lower in the previous session, the market managed to close higher but below the prior day's open, forming a bullish Harami Candle.
The stock managed to close back above the 100-day moving average at 12.54. When this moving average was crossed above the last time on November 23rd, SZU.DE gained 2.44% on the following trading day. After having been unable to move above 12.68 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 12.72.
Software AG shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could speed up should prices move below the nearby swing low at 12.32 where further sell stops might get activated. Further selling could move prices lower should the market test November's close-by low at 12.08.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for Software AG. Out of 81 times, SZU.DE closed higher 55.56% of the time on the next trading day after the market condition occurred.