TLG.DE declines to lowest close since January 21st
TLG Imobilien (TLG.DE) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
TLG.DE finished Wednesday at 25.84 losing €0.30 (-1.15%) on low volume, strongly underperforming the SDAX (0.67%). Today's close at 25.84 marks the lowest recorded closing price since January 21st. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 26.02, the market confirmed its breakout through the previous session low after trading up to €0.18 below it intraday.
Daily Candlestick Chart (TLG.DE as at Feb 13, 2019):
Wednesday's trading range has been €0.40 (1.52%), that's slightly above the last trading month's daily average range of €0.39. 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 significantly lower than usual for TLG.DE.
Four candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and three bearish patterns, the Bearish Closing Marubozu, the Bearish Marubozu and the Black Candle.
Prices broke below the key technical support level at 25.86 (now R1), which is likely to act as resistance going forward. The stock ran into sellers again today around 26.24 for the third trading day in a row after having found sellers at 26.26 in the prior session and at 26.20 two days ago. The last time this happened on January 28th, TLG.DE actually gained 1.98% on the following trading day.
Although the share 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 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Marubozu" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for TLG Imobilien. Out of 7 times, TLG.DE closed higher 71.43% 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 71.43% with an average market move of 1.69%.