BAX closes within previous day's range
Baxter International Inc. (BAX) Technical Analysis Report for Jul 27, 2020 | by Techniquant Editorial Team
BAX ended Monday at 89.29 edging higher $0.03 (0.03%) on low volume, underperforming the S&P 500 (0.74%). Trading $1.03 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 July 10th, BAX lost -2.08% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BAX as at Jul 27, 2020):
Monday's trading range has been $1.33 (1.49%), that's slightly below the last trading month's daily average range of $1.59. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BAX.
Four candlestick patterns are matching today's price action, the Gravestone Doji, the Northern Doji and the Shooting Star which are known as bearish patterns and one neutral pattern, the Doji.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 90.81 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 88.33 where further sell stops could get triggered. Further buying might move prices higher should the market test June's close-by high at 91.58.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Gravestone Doji" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Baxter International. Out of 38 times, BAX closed higher 63.16% 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 73.68% with an average market move of 1.21%.