BDX closes higher for the 2nd day in a row
Becton Dickinson and Company (BDX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BDX finished the week 5.39% higher at 260.22 after gaining $5.87 (2.31%) today, notably outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 256.44, the stock confirmed its breakout through the previous session high after trading up to $3.87 above it intraday.
Daily Candlestick Chart (BDX as at Feb 14, 2020):
Friday's trading range has been $6.68 (2.62%), that's slightly above the last trading month's daily average range of $5.36. 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 significantly higher than usual for BDX.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a White Candle showed up on Monday, BDX gained 1.75% on the following trading day.
Prices are trading close to the key technical resistance level at 261.64 (R1).
While the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Becton Dickinson. Out of 111 times, BDX closed higher 63.96% 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 60.36% with an average market move of 0.92%.