DAR stuck within tight trading range
Darling Ingredients Inc. (DAR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
DAR finished Wednesday at 35.20 gaining $0.20 (0.57%), strongly outperforming the S&P 500 (-0.46%). Trading up to $0.43 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (DAR as at Sep 16, 2020):
Wednesday's trading range has been $1.27 (3.61%), that's above the last trading month's daily average range of $1.00. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DAR. Prices continued to consolidate within a tight trading range between 34.72 and 36.09 where it has been caught now for the last three trading days.
Five candlestick patterns are matching today's price action, the Gravestone Doji and the Northern Doji which are both known as bearish patterns and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man. The last time a Gravestone Doji showed up on July 28th, DAR actually gained 3.26% on the following trading day.
Prices are trading close to the key technical support level at 34.68 (S1). The stock found buyers again today around 34.72 for the third trading day in a row after having found demand at 34.87 in the previous session and at 34.86 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 36.09 where further buy stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Darling Ingredients. Out of 84 times, DAR closed higher 55.95% 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 60.71% with an average market move of 1.74%.