BAX closes within previous day's range after lackluster session
Baxter International Inc. (BAX) Technical Analysis Report for Jul 24, 2020 | by Techniquant Editorial Team
BAX finished the week 1.94% higher at 89.26 after edging lower $0.23 (-0.26%) today, but still slightly outperforming the S&P 500 (-0.62%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BAX as at Jul 24, 2020):
Friday's trading range has been $1.09 (1.22%), that's below the last trading month's daily average range of $1.60. 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.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Hanging Man which are both known as bearish patterns. The last time a Bearish Spinning Top showed up on July 10th, BAX lost -2.08% on the following trading day.
Prices are trading close to the key technical support level at 88.17 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 90.81 where further buy stops might get triggered. Further buying could move prices higher should the market test June's nearby high at 91.58.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Baxter International. Out of 213 times, BAX closed higher 53.05% 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 61.03% with an average market move of 0.95%.