VNA.DE rallies, gaining €1.15 (2.86%) within a single day
Vonovia SE (VNA.DE) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
VNA.DE finished the week 2.23% higher at 41.30 after surging €1.15 (2.86%) today, notably outperforming the DAX (-0.31%). This is the biggest single-day gain in over two years. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 40.70, Vonovia confirmed its breakout through the previous session high after trading up to €0.69 above it intraday.
Daily Candlestick Chart (VNA.DE as at Jan 11, 2019):
Friday's trading range has been €1.13 (2.81%), that's far above the last trading month's daily average range of €0.79. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VNA.DE.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
The market managed to close above the 200-day moving average at 41.22 for the first time since December 21, 2018. When this moving average was crossed above the last time on November 6, 2018, VNA.DE gained 2.42% on the following trading day. Unable to break through the key technical resistance level at 41.37 (R1), the share closed below it after spiking up to 41.39 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move lower than 40.15 in the prior session, the stock found buyers again around the same price level today at 40.26.
VNA.DE shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for Vonovia. Out of 325 times, VNA.DE closed higher 57.23% 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 59.08% with an average market move of 0.39%.