BAX closes below its opening price unable to hold early session gains
Baxter International Inc. (BAX) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
BAX ended the week 0.45% higher at 77.93 after losing $0.28 (-0.36%) today on low volume, slightly underperforming the S&P 500 (-0.16%). Trading $0.46 higher after the open, the stock 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 28th, BAX lost -0.46% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BAX as at Jun 14, 2019):
Friday's trading range has been $1.11 (1.41%), that's slightly above the last trading month's daily average range of $1.10. 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 higher than usual for BAX.
Notwithstanding a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle.
Prices are trading close to the key technical support level at 77.50 (S1).
Baxter International shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling might speed up should prices move below the nearby swing low at 77.50 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Baxter International. Out of 359 times, BAX closed higher 53.20% 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 63.51% with an average market move of 0.85%.