CHD stuck within tight trading range
Church & Dwight Company Inc. (CHD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
CHD ended Thursday at 62.90 gaining $2.60 (4.31%), strongly underperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. 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 Mar 26, 2020):
Thursday's trading range has been $3.67 (6.09%), that's slightly below the last trading month's daily average range of $5.01. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for CHD. Prices continued to consolidate within a tight trading range between 59.36 and 63.98 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 18th, CHD actually lost -3.86% on the following trading day.
Prices are trading close to the key technical support level at 59.36 (S1). The stock ran into sellers again today around 63.98 for the third trading day in a row after having found sellers at 63.82 in the previous session and at 63.37 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 59.36 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Church & Dwight. Out of 142 times, CHD closed higher 57.04% 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 61.27% with an average market move of 0.55%.