DGX pushes through key technical resistance level
Quest Diagnostics Incorporated (DGX) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
DGX ended Thursday at 88.91 surging $9.89 (12.52%), notably outperforming the S&P 500 (6.24%). This is the biggest single-day gain ever recorded for the stock. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 81.07, the market confirmed its breakout through the prior session high after trading up to $10.42 above it intraday.
Daily Candlestick Chart (DGX as at Mar 26, 2020):
Thursday's trading range has been $11.16 (13.86%), that's far above the last trading month's daily average range of $7.41. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for DGX.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 84.40 (now S1), which is likely to act as support going forward. The last time this happened on March 4th, DGX gained 0.17% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Up Move" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Quest Diagnostics. Out of 189 times, DGX closed lower 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 short side has been after 10 trading days, showing a win rate of 49.21% with an average market move of -0.58%.