VOW3.DE closes within previous day's range
Volkswagen AG (VOW3.DE) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
VOW3.DE ended the week -1.86% lower at 144.32 after gaining €0.16 (0.11%) today on high volume, underperforming the DAX (0.85%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (VOW3.DE as at Mar 15, 2019):
Friday's trading range has been €3.20 (2.23%), that's slightly above the last trading month's daily average range of €2.90. 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 lower than usual for VOW3.DE.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Bullish Spinning Top which are both known as bullish patterns. The last time a Bullish Spinning Top showed up on January 10th, VOW3.DE actually lost -1.89% on the following trading day.
Prices are trading close to the key technical resistance level at 146.26 (R1).
While the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Further selling could move prices lower should the market test February's close-by low at 139.18.
Among the two 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 Volkswagen. Out of 102 times, VOW3.DE closed higher 52.94% 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 58.82% with an average market move of 1.03%.