DHI closes below its opening price unable to hold early session gains
D.R. Horton Inc. (DHI) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DHI ended the month 17.11% higher at 55.30 after losing $0.61 (-1.09%) today, significantly underperforming the S&P 500 (0.48%). Trading $1.76 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on May 6th, DHI lost -0.21% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (DHI as at May 29, 2020):
Friday's trading range has been $2.34 (4.21%), that's slightly above the last trading month's daily average range of $2.06. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DHI.
One bearish candlestick pattern matches today's price action, the Shooting Star.
Prices are trading close to the key technical support level at 53.53 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. Its common bearish interpretation has been confirmed for D. R. Horton. Out of 65 times, DHI closed lower 56.92% 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 55.38% with an average market move of -0.40%.