WAF.DE closes higher for the 3rd day in a row
Siltronic (WAF.DE) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, WAF.DE finished Wednesday at 96.16 gaining €3.62 (3.91%), notably outperforming the TecDAX (0.43%). Today's close at 96.16 marks the highest recorded closing price since October 17, 2018. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (WAF.DE as at Feb 13, 2019):
Wednesday's trading range has been €3.60 (3.83%), that's slightly below the last trading month's daily average range of €3.88. 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 WAF.DE.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 95.76 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since January 25th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 86.23 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on January 25th, WAF.DE actually lost -2.33% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Siltronic. Out of 35 times, WAF.DE closed higher 57.14% 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 71.43% with an average market move of 4.29%.