TTK.DE breaks below key technical support level
Takkt (TTK.DE) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
TTK.DE finished the week 6.59% higher at 14.56 after losing €0.18 (-1.22%) today, underperforming the SDAX (-0.48%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (TTK.DE as at Jan 11, 2019):
Friday's trading range has been €0.42 (2.83%), that's slightly below the last trading month's daily average range of €0.43. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TTK.DE. Prices continued to consolidate within a tight trading range between 14.40 and 14.96 where it has been caught now for the last three trading days.
Despite a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
Prices broke below the key technical support level at 14.68 (now R1), which is likely to act as resistance going forward. The share found buyers again today around 14.40 for the third trading day in a row after having found demand at 14.42 in the prior session and at 14.40 two days ago.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 13.44. The last time this happened on October 30, 2018, TTK.DE actually gained 3.02% on the following trading day.
While the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the nearby swing high at 14.96 where further buy stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for Takkt. Out of 115 times, TTK.DE closed higher 59.13% 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 56.52% with an average market move of 1.32%.