BAX snaps to lowest close since April 1st
Baxter International Inc. (BAX) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, BAX ended Wednesday at 80.46 losing $0.62 (-0.76%) on high volume, notably underperforming the S&P 500 (0.64%). Today's close at 80.46 marks the lowest recorded closing price since April 1st. Closing below Tuesday's low at 80.93, the market confirmed its breakout through the prior session low after trading up to $0.86 below it intraday.
Daily Candlestick Chart (BAX as at Aug 05, 2020):
Wednesday's trading range has been $2.04 (2.5%), that's slightly above the last trading month's daily average range of $1.86. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for BAX.
Prices are trading close to the key technical resistance level at 81.35 (R1).
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 86.52.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Baxter International. Out of 137 times, BAX closed higher 58.39% 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 66.42% with an average market move of 1.07%.