DGX runs into sellers around 127.35 for the third day in a row
Quest Diagnostics Incorporated (DGX) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, DGX ended the month 11.5% higher at 127.07 after edging higher $0.31 (0.24%) today on low volume, underperforming the S&P 500 (0.77%). Trading up to $1.84 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 127.01, Quest Diagnostics confirmed its breakout through the prior session high after trading up to $0.34 above it intraday.
Daily Candlestick Chart (DGX as at Jul 31, 2020):
Friday's trading range has been $2.35 (1.85%), that's below the last trading month's daily average range of $2.98. 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.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Hanging Man showed up on June 29th, DGX actually gained 3.21% on the following trading day.
After trading down to 125.00 earlier during the day, the stock bounced off the key technical support level at 125.00 (S1). The failure to close below the support might increase that levels importance as support going forward. The market ran into sellers again today around 127.35 for the third trading day in a row after having found sellers at 127.01 in the previous session and at 126.96 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 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 55.05% 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 59.63% with an average market move of 0.77%.