DHR rockets, gaining $2.11 (2.08%) within a single day
Danaher Corp. (DHR) Technical Analysis Report for Oct 12, 2018
DHR finished the week -3.37% lower at 103.38 after surging $2.11 (2.08%) today, outperforming the S&P 500 (1.42%). This is the biggest single-day gain in over a month. Trading up to $1.05 lower after the open, Danaher Corp. managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (DHR as at Oct 12, 2018):
Friday's trading range has been $1.99 (1.93%), that's above the last trading month's daily average range of $1.43. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for DHR.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
The market managed to break above the 100-day moving average at 102.59 today for the first time since August 27th. Prices are trading close to the key technical resistance level at 104.21 (R1). After having been unable to move above 104.00 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 103.79. The last time this happened on Tuesday, DHR lost -2.71% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 106.97.
While the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the nine 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 Danaher Corp.. Out of 500 times, DHR closed higher 57.20% 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 58.60% with an average market move of 0.74%.