SZU.DE closes lower for the 2nd day in a row
Software AG (SZU.DE) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SZU.DE ended Wednesday at 13.40 losing €0.22 (-1.62%), significantly underperforming the MDAX (0.61%). Today's close at 13.40 marks the lowest recorded closing price since January 16th. Trading €0.22 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on November 30, 2018, SZU.DE actually gained 2.63% on the following trading day. Closing below Tuesday's low at 13.48, the stock confirmed its breakout through the previous session low after trading up to €0.17 below it intraday.
Daily Candlestick Chart (SZU.DE as at Feb 13, 2019):
Wednesday's trading range has been €0.45 (3.32%), that's slightly below the last trading month's daily average range of €0.46. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for SZU.DE.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern.
Prices are trading close to the key technical support level at 13.12 (S1).
Though Software AG is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Software AG. Out of 432 times, SZU.DE closed higher 51.16% 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 two trading days, showing a win rate of 51.39% with an average market move of 0.00%.