UTDI.DE closes below its opening price unable to hold early session gains
United Internet (UTDI.DE) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
UTDI.DE ended the week -5.16% lower at 37.70 after edging higher €0.02 (0.05%) today on low volume, slightly underperforming the MDAX (0.39%). Trading €0.37 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 missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (UTDI.DE as at Dec 07, 2018):
Friday's trading range has been €0.57 (1.5%), that's below the last trading month's daily average range of €1.07. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for UTDI.DE.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Homing Pigeon. The last time a Homing Pigeon showed up on October 15th, UTDI.DE gained 3.40% on the following trading day.
Prices are trading close to the key technical support level at 37.14 (S1). After having been unable to move above 38.35 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 38.27.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 37.50 where further sell stops might get activated. Further selling could move prices lower should the market test November's close-by low at 35.74.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Homing Pigeon" stand out. Its common bullish interpretation has been confirmed for United Internet. Out of 22 times, UTDI.DE closed higher 54.55% 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 68.18% with an average market move of 4.37%.