BAX unable to break through key resistance level
Baxter International Inc. (BAX) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
BAX finished the month 0.33% higher at 86.38 after gaining $0.37 (0.43%) today, slightly underperforming the S&P 500 (0.77%). Trading up to $0.92 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 86.11, the market confirmed its breakout through the previous session high after trading up to $0.53 above it intraday.
Daily Candlestick Chart (BAX as at Jul 31, 2020):
Friday's trading range has been $1.88 (2.19%), that's slightly above the last trading month's daily average range of $1.71. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BAX.
Unable to break through the key technical resistance level at 86.52 (R1), Baxter International closed below it after spiking up to 86.64 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on July 6th, BAX lost -2.96% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for Baxter International. Out of 451 times, BAX closed higher 51.22% 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 62.53% with an average market move of 0.69%.