BAX pushes through key technical resistance level
Baxter International Inc. (BAX) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
BAX finished Thursday at 80.17 gaining $6.60 (8.97%), significantly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 74.86, the stock confirmed its breakout through the prior session high after trading up to $5.88 above it intraday.
Daily Candlestick Chart (BAX as at Mar 26, 2020):
Thursday's trading range has been $6.83 (9.18%), that's above the last trading month's daily average range of $5.35. 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 BAX.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Buyers managed to take out the key technical resistance level at 78.10 (now S1), which is likely to act as support going forward. The last time this happened on March 18th, BAX actually lost -7.59% on the following trading day. After spiking up to 80.74 during the day, the market found resistance at the 20-day moving average at 80.33.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Baxter International. Out of 253 times, BAX closed higher 55.34% 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 63.64% with an average market move of 0.58%.