DGX runs into sellers around 98.25 for the third day in a row
Quest Diagnostics Incorporated (DGX) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
DGX finished the week 4.23% higher at 97.33 after losing $0.47 (-0.48%) today, but still slightly outperforming the S&P 500 (-0.92%). Trading $0.63 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on October 22nd, DGX lost -6.22% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (DGX as at Nov 09, 2018):
Friday's trading range has been $1.38 (1.41%), that's below the last trading month's daily average range of $1.94. 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 DGX. Prices continued to consolidate within a tight trading range between 96.24 and 98.25 where it has been caught now for the last three trading days.
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. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
The share ran into sellers again today around 98.25 for the third trading day in a row after having found sellers at 98.24 in the prior session and at 97.99 two days ago.
Though Quest Diagnostics 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 six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Quest Diagnostics. Out of 127 times, DGX closed higher 50.39% 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 59.84% with an average market move of 0.47%.