CHD closes above its opening price after recovering from early selling pressure
Church & Dwight Company Inc. (CHD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CHD ended the month 2.97% higher at 77.30 after gaining $0.58 (0.76%) today, underperforming the S&P 500 (1.54%). Trading up to $0.40 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 25th, CHD actually lost -0.77% on the following trading day. Closing above Monday's high at 76.97, the share confirmed its breakout through the prior session high after trading up to $0.51 above it intraday.
Daily Candlestick Chart (CHD as at Jun 30, 2020):
Tuesday's trading range has been $1.08 (1.41%), that's below the last trading month's daily average range of $1.54. 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. Prices continued to consolidate within a tight trading range between 75.43 and 77.48 where it has been caught now for the whole last trading week.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 77.48 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 76.02 where further sell stops might get triggered. With prices trading close to this year's high at 79.09, upside momentum could speed up should the stock be able to break out to new highs for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Church & Dwight. Out of 810 times, CHD closed higher 59.26% 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 59.26% with an average market move of 0.51%.