CHD finds buyers again around 70.61
Church & Dwight Company Inc. (CHD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CHD ended the week -2.27% lower at 71.93 after gaining $0.96 (1.35%) today on low volume, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CHD as at May 22, 2020):
Friday's trading range has been $1.68 (2.37%), that's slightly below the last trading month's daily average range of $1.75. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CHD.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on May 5th, CHD actually lost -2.15% on the following trading day.
After having been unable to move lower than 70.79 in the prior session, the stock found buyers again around the same price level today at 70.61.
Though Church & Dwight is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to May's high at 74.67, upside momentum could accelerate should the share mark new highs for the month. As prices are trading close to May's low at 69.84, downside momentum might speed up should the market mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. Its common bullish interpretation has been confirmed for Church & Dwight. Out of 102 times, CHD closed higher 57.84% 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 63.73% with an average market move of 0.60%.