BDX pops to highest close since February 5th
Becton Dickinson and Company (BDX) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
BDX ended the month 17.58% higher at 281.34 after surging $7.50 (2.74%) today, notably outperforming the S&P 500 (0.77%). This is the biggest single-day gain in over two months. The last time we've seen such an unusually strong single-day gain on July 14th, BDX gained 1.35% on the following trading day. Today's close at 281.34 marks the highest recorded closing price since February 5th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 275.14, the stock confirmed its breakout through the previous session high after trading up to $6.21 above it intraday.
Daily Candlestick Chart (BDX as at Jul 31, 2020):
Friday's trading range has been $8.10 (2.96%), that's far above the last trading month's daily average range of $5.21. 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 lower than usual for BDX.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 276.42 (now S1), which is likely to act as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 286.72, upside momentum might accelerate should the share be able to break out to new highs for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Becton Dickinson. Out of 49 times, BDX closed higher 59.18% 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 55.10% with an average market move of 0.29%.