DGX closes lower for the 3rd day in a row
Quest Diagnostics (DGX) Technical Analysis Report for Oct 12, 2018
Moving lower for the 3rd day in a row, DGX ended the week -2.98% lower at 100.25 after losing $0.19 (-0.19%) today, notably underperforming the S&P 500 (1.42%). Today's close at 100.25 marks the lowest recorded closing price since May 8th. Closing below Thursday's low at 100.40, the share confirmed its breakout through the previous session low after trading up to $1.11 below it intraday.
Daily Candlestick Chart (DGX as at Oct 12, 2018):
Friday's trading range has been $2.44 (2.42%), that's far above the last trading month's daily average range of $1.41. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for DGX.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on Monday, DGX actually gained 0.60% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 105.77.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Quest Diagnostics. Out of 136 times, DGX closed higher 56.62% 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 55.88% with an average market move of 0.58%.