DBX closes above its opening price after recovering from early selling pressure
Dropbox Inc (DBX) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
DBX finished the week 0.36% higher at 22.31 after gaining $0.18 (0.81%) today, slightly outperforming the S&P 500 (0.5%). Trading up to $0.15 lower after the open, Dropbox managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on February 27th, DBX actually lost -1.57% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (DBX as at Mar 15, 2019):
Friday's trading range has been $0.40 (1.79%), that's far below the last trading month's daily average range of $0.73. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for DBX.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji.
Prices are trading close to the key technical support level at 21.91 (S1). After having been unable to move lower than 22.08 in the previous session, the stock found buyers again around the same price level today at 22.15.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might speed up should prices move below the nearby swing low at 22.08 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Dropbox. Out of 12 times, DBX closed higher 58.33% 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 50.00% with an average market move of 2.10%.