BAX closes within previous day's range after lackluster session
Baxter International Inc. (BAX) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
BAX finished Thursday at 87.21 losing $0.10 (-0.11%) on low volume, underperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. 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 Jul 02, 2020):
Thursday's trading range has been $1.18 (1.36%), that's far below the last trading month's daily average range of $1.86. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BAX.
Three candlestick patterns are matching today's price action, the Bullish Short Candle, the Tweezer Top and the White Candle which are known as bullish patterns.
Prices are trading close to the key technical support level at 86.52 (S1). The market closed back below the 50-day moving average at 87.24. After having been unable to move lower than 86.24 in the previous session, the stock found buyers again around the same price level today at 86.47. The last time this happened on Monday, BAX gained 2.22% on the following trading day.
While the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Baxter International. Out of 574 times, BAX closed higher 54.18% 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 60.80% with an average market move of 0.68%.