DAN breaks below key technical support level
Dana Incorporated (DAN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
DAN finished the week 10.3% higher at 17.56 after losing $0.35 (-1.95%) today, notably underperforming the S&P 500 (0.18%). Trading $0.45 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DAN as at Feb 14, 2020):
Friday's trading range has been $1.15 (6.35%), that's far above the last trading month's daily average range of $0.58. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for DAN.
Prices are trading close to the key technical support level at 16.99 (S1). Prices broke below the key technical support level at 17.60 (now R1), which is likely to act as resistance going forward. The last time this happened on Monday, DAN actually gained 5.05% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 16.44.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Dana Incorporated. Out of 417 times, DAN closed higher 49.40% 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 57.79% with an average market move of 1.14%.