DCI closes lower for the 2nd day in a row
Donaldson Company Inc. (DCI) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DCI finished the week -0.3% lower at 52.53 after edging lower $0.15 (-0.28%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. 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 (DCI as at Feb 14, 2020):
Friday's trading range has been $0.42 (0.8%), that's far below the last trading month's daily average range of $0.87. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DCI.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on January 29th, DCI actually gained 0.87% on the following trading day.
Prices are trading close to the key technical support level at 52.19 (S1).
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling might accelerate should prices move below the nearby swing low at 52.14 where further sell stops could get activated. With prices trading close to this year's low at 51.70, downside momentum might speed up should the market break out to new lows for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Donaldson. Out of 251 times, DCI closed higher 53.39% 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 56.97% with an average market move of 0.81%.