BAX closes within prior day's range after lackluster session
Baxter International Inc. (BAX) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
BAX finished the week -0.26% lower at 86.93 after gaining $0.37 (0.43%) today on low volume, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.61 lower after the open, Baxter International managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BAX as at May 22, 2020):
Friday's trading range has been $0.83 (0.96%), that's far below the last trading month's daily average range of $2.18. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for BAX.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Spinning Top and the Takuri Line which are both known as bullish patterns.
The stock managed to close back above the 100-day moving average at 86.79. When this moving average was crossed above the last time on Wednesday, BAX actually lost -0.98% on the following trading day.
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.
Buying could accelerate should prices move above the close-by swing high at 89.39 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 85.82 where further sell stops might get activated. As prices are trading close to May's high at 89.77, upside momentum could accelerate should the share mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Baxter International. Out of 469 times, BAX closed higher 57.78% 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 57.36% with an average market move of 0.54%.