DDS closes lower for the 2nd day in a row
Dillard's Inc. (DDS) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DDS finished Wednesday at 34.40 losing $0.21 (-0.61%), slightly underperforming the S&P 500 (-0.46%). Trading $0.89 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DDS as at Sep 16, 2020):
Wednesday's trading range has been $2.27 (6.43%), that's above the last trading month's daily average range of $1.79. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DDS.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. The last time this happened on August 21st, DDS actually gained 8.45% on the following trading day. In spite of a strong opening Dillard's closed below the prior day's open and close, forming a bearish Engulfing Candle.
Prices are trading close to the key technical resistance level at 34.67 (R1). After having been unable to move above 35.92 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 36.22.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 32.56 where further sell stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Dillard's. Out of 105 times, DDS closed higher 59.05% 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 56.19% with an average market move of 1.28%.