BAX pushes through key technical resistance level
Baxter International Inc. (BAX) Technical Analysis Report for Jul 29, 2020 | by Techniquant Editorial Team
BAX finished Wednesday at 90.73 gaining $1.47 (1.65%), slightly outperforming the S&P 500 (1.24%) ahead of Thursday's earnings report. Today's close at 90.73 marks the highest recorded closing price since June 2nd. Closing above Tuesday's high at 89.79, the stock confirmed its breakout through the prior session high after trading up to $1.66 above it intraday.
Daily Candlestick Chart (BAX as at Jul 29, 2020):
BAX is set to report earnings before tomorrow's market open. For the upcoming report, analysts expect the company to have earned $0.7 per share. The company's last earnings report was released on April 30, 2020, when Baxter International Inc. reported earnings of $0.82 per share beating market expectations by 12.3%.
Wednesday's trading range has been $2.17 (2.43%), that's far above the last trading month's daily average range of $1.56. 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 slightly higher than usual for BAX.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 89.90 (now S1), which is likely to act as support going forward. The last time this happened on July 15th, BAX actually lost -1.47% on the following trading day. Prices are trading close to the key technical resistance level at 91.58 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further buying might move prices higher should the market test June's nearby high at 91.58.
Among the five 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 250 times, BAX closed higher 54.00% 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 62.40% with an average market move of 0.52%.