DHR finds buyers at key support level
Danaher Corporation (DHR) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
DHR finished the week 3.1% higher at 104.39 after edging lower $0.36 (-0.34%) today, but still outperforming the S&P 500 (-0.92%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (DHR as at Nov 09, 2018):
Friday's trading range has been $1.37 (1.31%), that's below the last trading month's daily average range of $2.30. 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 DHR.
After moving higher in the previous session, the share closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, three candlestick patterns are matching today's price action, the Hanging Man and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji.
After trading down to 103.25 earlier during the day, the market bounced off the key technical support level at 104.21 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on Tuesday, DHR gained 2.82% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 105.02 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Danaher. Out of 89 times, DHR closed higher 53.93% 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 62.92% with an average market move of 1.06%.