DBX closes within previous day's range after lackluster session
Dropbox Inc (DBX) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
DBX finished the week 2.82% higher at 25.87 after losing $0.09 (-0.35%) today, underperforming the S&P 500 (0.46%). Trading $0.11 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Monday, DBX actually gained 1.04% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (DBX as at Jul 12, 2019):
Friday's trading range has been $0.32 (1.23%), that's far below the last trading month's daily average range of $0.60. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for DBX.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
With prices trading close to this year's high at 26.49, upside momentum might speed up should the stock be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Dropbox. Out of 58 times, DBX closed higher 51.72% 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 55.17% with an average market move of 1.17%.