VOW3.DE plummets, losing €5.24 (-3.46%) within a single day
Volkswagen AG (VOW3.DE) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, VOW3.DE ended the week -5.38% lower at 146.06 after tanking €5.24 (-3.46%) today, significantly underperforming the DAX (0.02%). This is the biggest single-day loss in over two weeks. The last time we've seen such an unusually strong single-day loss on October 24th, VOW3.DE actually gained 2.47% on the following trading day. The bears were in full control today, moving the market lower throughout the whole session.
Daily Candlestick Chart (VOW3.DE as at Nov 09, 2018):
Friday's trading range has been €5.30 (3.54%), that's slightly above the last trading month's daily average range of €5.02. 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 higher than usual for VOW3.DE.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 144.90 during the day, the share found support at the 100-day moving average at 145.10. The market closed back below the 20-day moving average at 146.29 for the first time since October 29th.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 100" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Volkswagen. Out of 31 times, VOW3.DE closed lower 58.06% of the time on the next trading day after the market condition occurred.