DAN closes higher for the 2nd day in a row
Dana Incorporated (DAN) Technical Analysis Report for Feb 20, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, DAN finished Thursday at 17.77 gaining $0.36 (2.07%), strongly outperforming the S&P 500 (-0.38%). Closing above Wednesday's high at 17.52, the stock confirmed its breakout through the previous session high after trading up to $0.40 above it intraday.
Daily Candlestick Chart (DAN as at Feb 20, 2020):
Thursday's trading range has been $0.77 (4.46%), that's above the last trading month's daily average range of $0.59. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for DAN.
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. The last time this happened on February 11th, DAN gained 3.88% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
After trading as low as 17.15 during the day, the share found support at the 50-day moving average at 17.25. Prices are trading close to the key technical resistance level at 18.04 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Dana Incorporated. Out of 66 times, DAN closed higher 59.09% 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 60.61% with an average market move of 2.02%.