DEO rallies, gaining $12.03 (10.17%) within a single day
Diageo plc (DEO) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, DEO ended Thursday at 130.37 surging $12.03 (10.17%), strongly outperforming the S&P 500 (6.24%). This is the biggest single-day gain ever recorded for the share. The last time we've seen such an unusually strong single-day gain on Tuesday, DEO gained 3.45% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (DEO as at Mar 26, 2020):
Thursday's trading range has been $9.43 (7.76%), that's far above the last trading month's daily average range of $6.14. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for DEO.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close above the 20-day moving average at 127.20 for the first time since January 24th.
Although Diageo plc is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Diageo plc. Out of 154 times, DEO closed higher 61.69% 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 53.25% with an average market move of 0.14%.