BAX slides to lowest close since June 24th
Baxter International Inc. (BAX) Technical Analysis Report for Aug 03, 2020 | by Techniquant Editorial Team
BAX finished Monday at 83.16 tanking $3.22 (-3.73%), notably underperforming the S&P 500 (0.72%). Today's close at 83.16 marks the lowest recorded closing price since June 24th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Friday's low at 84.76, the market confirmed its breakout through the prior session low after trading up to $1.63 below it intraday.
Daily Candlestick Chart (BAX as at Aug 03, 2020):
Monday's trading range has been $3.98 (4.58%), that's far above the last trading month's daily average range of $1.86. 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.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
The stock closed below the 200-day moving average at 85.48 for the first time since July 14th. When this moving average was crossed below the last time on July 10th, BAX lost -2.08% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could speed up should prices move below the nearby swing low at 82.92 where further sell stops might get triggered. Trading close to June's low at 81.35 we could see further downside momentum if potential sell stops at the level get activated.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 200" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Baxter International. Out of 63 times, BAX closed higher 63.49% 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 55.56% with an average market move of 0.39%.