CHD closes higher for the 5th day in a row
Church & Dwight Company Inc. (CHD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, CHD finished the month 24.62% higher at 96.33 after surging $6.27 (6.96%) today on high volume, notably outperforming the S&P 500 (0.77%) following today's earnings report. This is the biggest single-day gain in over four months. Today's close at 96.33 marks the highest recorded closing price ever. Trading up to $1.73 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (CHD as at Jul 31, 2020):
CHD reported earnings of $0.77 per share before today's market open. With analysts having expected an EPS of $0.63, Church & Dwight Company Inc. beat market expectations by 22.2%. The company's last earnings report was released on April 30, 2020, when Church & Dwight Company Inc. reported earnings of $0.83 per share surpassing market expectations by 9.2%.
Friday's trading range has been $4.39 (4.68%), that's far above the last trading month's daily average range of $1.86. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for CHD.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Wednesday, CHD gained 0.84% on the following trading day.
Crossing above the upper Bollinger Band for the first time since July 15th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 84.95 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post Earnings Report" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Church & Dwight. Out of 31 times, CHD closed higher 54.84% 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 64.52% with an average market move of 1.15%.