DHI dominated by bulls lifting the market higher throughout the day
D.R. Horton Inc. (DHI) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, DHI ended Thursday at 39.27 gaining $2.24 (6.05%) on low volume, slightly underperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 38.03, the stock confirmed its breakout through the previous session high after trading up to $1.45 above it intraday.
Daily Candlestick Chart (DHI as at Mar 26, 2020):
Thursday's trading range has been $2.35 (6.26%), that's below the last trading month's daily average range of $3.54. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for DHI.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on March 4th, DHI actually lost -3.16% on the following trading day.
Prices are trading close to the key technical resistance level at 41.96 (R1).
Although D. R. Horton is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for D. R. Horton. Out of 78 times, DHI closed higher 53.85% 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 60.26% with an average market move of 0.67%.