CHD slumps, losing $1.51 (-2.0%) within a single day
Church & Dwight Company Inc. (CHD) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CHD finished the week -2.54% lower at 74.12 after tanking $1.51 (-2.0%) today, notably underperforming the S&P 500 (1.09%). This is the biggest single-day loss in over a month. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 74.45, the share confirmed its breakout through the previous session low after trading up to $0.34 below it intraday.
Daily Candlestick Chart (CHD as at Oct 11, 2019):
Friday's trading range has been $1.13 (1.5%), that's slightly above the last trading month's daily average range of $1.11. 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 strongly lower than usual for CHD.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 73.37 (S1). The stock closed back below the 20-day moving average at 74.43 for the first time since September 26th. When this moving average was crossed below the last time on September 5th, CHD lost -2.06% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Down Move" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Church & Dwight. Out of 122 times, CHD closed higher 56.56% 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 63.93% with an average market move of 1.57%.