BAX slumps -1.2% closing $0.92 lower
Baxter International Inc. (BAX) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
BAX finished the week 0.05% higher at 75.98 after losing $0.92 (-1.2%) today, underperforming the S&P 500 (-0.58%). This is the biggest single-day loss in over a month. Trading $0.97 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on May 8th, BAX lost -0.90% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BAX as at May 17, 2019):
Friday's trading range has been $1.33 (1.75%), that's slightly below the last trading month's daily average range of $1.34. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for BAX.
One bearish candlestick pattern matches today's price action, the Shooting Star.
Baxter International closed back below the 20-day moving average at 76.20. After having been unable to move lower than 75.90 in the prior session, the stock found buyers again around the same price level today at 75.82.
Although the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the nearby swing high at 77.21 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 75.06 where further sell stops might get triggered. As prices are trading close to May's high at 77.58, upside momentum could accelerate should BAX mark new highs for the month.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Baxter International. Out of 55 times, BAX closed higher 63.64% 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 seven trading days, showing a win rate of 56.36% with an average market move of 0.20%.