CHD closes lower for the 5th day in a row
Church & Dwight Company Inc. (CHD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, CHD finished Wednesday at 91.96 losing $0.37 (-0.4%), but still slightly outperforming the S&P 500 (-0.46%). Trading $0.58 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (CHD as at Sep 16, 2020):
Wednesday's trading range has been $1.44 (1.56%), that's slightly below the last trading month's daily average range of $1.82. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CHD.
After trading down to 91.73 earlier during the day, the stock bounced off the key technical support level at 91.86 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on September 8th, CHD gained 2.33% on the following trading day. After having been unable to move lower than 91.96 in the prior session, Church & Dwight found buyers again around the same price level today at 91.73.
Though the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the close-by swing high at 93.75 where further buy stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Church & Dwight. Out of 506 times, CHD closed higher 60.28% 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 60.67% with an average market move of 0.88%.