BAX closes within prior day's range
Baxter International Inc. (BAX) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
BAX finished Wednesday at 81.68 gaining $1.17 (1.45%), notably outperforming the S&P 500 (-0.46%). Trading up to $0.57 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. 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 Sep 16, 2020):
Wednesday's trading range has been $1.47 (1.81%), that's slightly below the last trading month's daily average range of $1.66. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BAX.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving lower in the previous session, the market managed to close higher but below the prior day's open, forming a bullish Harami Candle. The last time this candlestick pattern showed up on March 24th, BAX actually lost -0.46% on the following trading day.
Buyers managed to take out the key technical resistance level at 81.35 (now S1), which is likely to act as support going forward. After having been unable to move lower than 80.36 in the previous session, the share found buyers again around the same price level today at 80.52.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 83.70.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 80.36 where further sell stops could get activated. Further selling might move prices lower should the market test August's close-by low at 78.68.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Baxter International. Out of 74 times, BAX closed higher 54.05% 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 70.27% with an average market move of 1.17%.