CHD closes within prior day's range
Church & Dwight Company Inc. (CHD) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
CHD finished the week -5.27% lower at 56.07 after gaining $1.20 (2.19%) today, outperforming the S&P 500 (1.42%). Trading up to $0.46 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CHD as at Oct 12, 2018):
Friday's trading range has been $1.24 (2.23%), that's above the last trading month's daily average range of $0.97. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for CHD.
Buyers managed to take out the key technical resistance level at 56.06 (now S1), which is likely to act as support going forward. After having been unable to move above 56.17 in the previous session, Church & ran into sellers again around the same price level today, missing to move higher than 56.28. The last time this happened on October 3rd, CHD lost -1.34% on the following trading day.
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 58.82.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Church &. Out of 592 times, CHD closed higher 54.22% 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 58.28% with an average market move of 0.52%.