DAR finds buyers again around 17.85
Darling Ingredients Inc. (DAR) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team
DAR ended the week 21.95% higher at 18.50 after losing $0.50 (-2.63%) today, but still outperforming the S&P 500 (-3.37%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (DAR as at Mar 27, 2020):
Friday's trading range has been $1.43 (7.83%), that's slightly below the last trading month's daily average range of $1.93. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for DAR.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical resistance level at 19.51 (R1). After having been unable to move lower than 17.72 in the prior session, the share found buyers again around the same price level today at 17.85. The last time this happened on March 16th, DAR gained 3.84% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 19.51 where further buy stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Darling Ingredients. Out of 591 times, DAR closed higher 53.64% 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 56.35% with an average market move of 0.95%.