TEG.DE closes higher for the 3rd day in a row
TAG (TEG.DE) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, TEG.DE ended the week 0.09% higher at 21.16 after gaining €0.06 (0.28%) today, slightly underperforming the MDAX (0.39%). Today's close at 21.16 marks the highest recorded closing price since September 17th. Trading €0.32 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (TEG.DE as at Dec 07, 2018):
Friday's trading range has been €0.50 (2.36%), that's far above the last trading month's daily average range of €0.36. 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 lower than usual for TEG.DE.
Five candlestick patterns are matching today's price action, the Gravestone Doji and the Northern Doji which are both known as bearish patterns and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man.
Unable to break through the key technical resistance level at 21.32 (R1), TAG closed below it after spiking up to 21.50 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on November 22nd, TEG.DE actually gained 1.07% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 21.50 where further buy stops could get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Gravestone Doji" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for TAG. Out of 39 times, TEG.DE closed higher 46.15% 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 64.10% with an average market move of 1.48%.