TLG.DE enters Golden Cross for the first time since September 7th
TLG Imobilien (TLG.DE) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, TLG.DE finished the week 1.99% higher at 24.62 after gaining €0.04 (0.16%) today, slightly outperforming the SDAX (-0.09%). Today's close at 24.62 marks the highest recorded closing price ever. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (TLG.DE as at Dec 07, 2018):
Friday's trading range has been €0.30 (1.23%), that's below the last trading month's daily average range of €0.47. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for TLG.DE.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 24.80 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term. With its 50-day moving average crossing above its 200-day moving average, the stock has entered a so-called "Golden Cross" for the first time since September 7th. Showing increasing upward momentum in the short and medium-term the "Golden Cross" is known to indicate a potential bull market on the horizon. When the last "Golden Cross" happened on May 23, 2017, TLG.DE actually lost -2.74% on the following trading day.
Buying could accelerate should prices move above the nearby swing high at 24.88 where further buy stops might get activated. With prices trading close to this year's high at 24.96, upside momentum could speed up should the market be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Golden Cross" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for TLG Imobilien. Out of 1 times, TLG.DE closed lower 100.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 100.00% with an average market move of -0.75%.