DAR dominated by bears dragging the market lower throughout the day
Darling Ingredients Inc. (DAR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
DAR ended the week 1.74% higher at 28.69 after losing $0.19 (-0.66%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (DAR as at Feb 14, 2020):
Friday's trading range has been $0.33 (1.14%), that's far below the last trading month's daily average range of $0.60. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DAR. Prices continued to consolidate within a tight trading range between 28.47 and 29.00 where it has been caught now for the last three trading days.
Regardless of a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 28.37 (S1). The market ran into sellers again today around 29.00 for the third trading day in a row after having found sellers at 28.95 in the prior session and at 28.99 two days ago. The last time this happened on January 28th, DAR actually gained 1.69% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 28.47 where further sell stops could get activated. With prices trading close to this year's high at 29.57, upside momentum might speed up should Darling Ingredients be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Darling Ingredients. Out of 94 times, DAR closed higher 54.26% 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 62.77% with an average market move of 2.03%.