DGX runs into sellers again around 98.13
Quest Diagnostics Incorporated (DGX) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
DGX ended the week -1.96% lower at 97.23 after gaining $0.84 (0.87%) today, notably outperforming the S&P 500 (-0.58%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (DGX as at May 17, 2019):
Friday's trading range has been $2.64 (2.76%), that's slightly above the last trading month's daily average range of $2.12. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DGX. Prices continued to consolidate within a tight trading range between 95.49 and 98.39 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Piercing Pattern and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 96.62 (now S1), which is likely to act as support going forward. The last time this happened on May 10th, DGX actually lost -2.11% on the following trading day. After having been unable to move above 97.98 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 98.13.
While Quest Diagnostics is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the nearby swing high at 98.39 where further buy stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Piercing Pattern" stand out. Its common bullish interpretation has been confirmed for Quest Diagnostics. Out of 9 times, DGX closed higher 66.67% 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 two trading days, showing a win rate of 66.67% with an average market move of 0.40%.