DGX finds buyers at key support level
Quest Diagnostics Incorporated (DGX) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DGX ended the week 1.58% higher at 112.83 after losing $0.16 (-0.14%) today on low volume, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (DGX as at May 22, 2020):
Friday's trading range has been $1.78 (1.57%), that's below the last trading month's daily average range of $4.41. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for DGX.
One bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on May 11th, DGX lost -2.80% on the following trading day.
After trading down to 111.46 earlier during the day, Quest Diagnostics bounced off the key technical support level at 112.64 (S1). The failure to close below the support might increase that levels importance as support going forward. After having been unable to move lower than 112.02 in the previous session, the share found buyers again around the same price level today at 111.46.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Quest Diagnostics. Out of 436 times, DGX closed higher 55.73% 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 58.26% with an average market move of 0.68%.