DCI finds buyers again around 47.61
Donaldson Company Inc. (DCI) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
DCI finished the month 3.91% higher at 48.34 after flat today on high volume, underperforming the S&P 500 (0.77%). Trading up to $0.46 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on July 17th, DCI actually lost -0.54% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DCI as at Jul 31, 2020):
Friday's trading range has been $0.76 (1.58%), that's slightly below the last trading month's daily average range of $0.81. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DCI.
After trading down to 47.61 earlier during the day, Donaldson bounced off the key technical support level at 47.61 (S1). The failure to close below the support could increase that levels importance as support going forward. After having been unable to move lower than 47.73 in the prior session, the share found buyers again around the same price level today at 47.61.
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 49.45 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Donaldson. Out of 423 times, DCI closed higher 56.74% 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 52.48% with an average market move of 0.27%.