BDX rockets 2.7% closing $6.30 higher
Becton Dickinson and Company (BDX) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
BDX finished the month -3.1% lower at 239.27 after surging $6.30 (2.7%) today, strongly outperforming the S&P 500 (1.54%). This is the biggest single-day gain in over a month. Today's close at 239.27 marks the highest recorded closing price since June 8th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 234.54, the stock confirmed its breakout through the previous session high after trading up to $6.28 above it intraday.
Daily Candlestick Chart (BDX as at Jun 30, 2020):
Tuesday's trading range has been $9.76 (4.2%), that's far above the last trading month's daily average range of $6.26. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for BDX.
Even with a weak opening Becton Dickinson managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on June 8th, BDX actually lost -4.03% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close above the 20-day moving average at 236.68 for the first time since May 19th. Unable to break through the key technical resistance level at 240.00 (R1), the market closed below it after spiking up to 240.82 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
Though BDX is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Becton Dickinson. Out of 42 times, BDX closed higher 66.67% 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 52.38% with an average market move of 0.47%.