UTDI.DE finds buyers at key support level
United Internet (UTDI.DE) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, UTDI.DE finished the week -4.5% lower at 36.95 after losing €0.25 (-0.67%) today, slightly underperforming the MDAX (-0.18%). Today's close at 36.95 marks the lowest recorded closing price since December 10, 2018. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (UTDI.DE as at Jan 11, 2019):
Friday's trading range has been €0.95 (2.56%), that's slightly below the last trading month's daily average range of €1.06. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for UTDI.DE.
One bullish candlestick pattern matches today's price action, the Takuri Line. The last time a Takuri Line showed up on October 15, 2018, UTDI.DE gained 3.40% on the following trading day.
After trading down to 36.23 earlier during the day, the stock bounced off the key technical support level at 36.86 (S1). The failure to close below the support might increase that levels significance as support going forward.
United Internet shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for United Internet. Out of 415 times, UTDI.DE closed higher 56.14% 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 60.00% with an average market move of 0.79%.