DGX rises to highest close since July 23, 2018
Quest Diagnostics Incorporated (DGX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, DGX finished the week 1.26% higher at 112.85 after gaining $0.69 (0.62%) today on low volume, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 112.85 marks the highest recorded closing price since July 23, 2018. Trading up to $0.57 lower after the open, Quest Diagnostics managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Tuesday, DGX actually lost -1.07% on the following trading day. Closing above Thursday's high at 112.74, the stock confirmed its breakout through the prior session high after trading up to $0.12 above it intraday.
Daily Candlestick Chart (DGX as at Feb 14, 2020):
Friday's trading range has been $1.15 (1.02%), that's below the last trading month's daily average range of $1.72. 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 110.62 and 112.98 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical resistance level at 112.89 (R1). The market was sold again around 112.86 after having seen highs at 112.74, 112.92 and 112.98 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 112.98 where further buy stops might get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous three Highs" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Quest Diagnostics. Out of 27 times, DGX closed higher 55.56% 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 74.07% with an average market move of 1.35%.