DHR ends the day indecisive
Danaher Corporation (DHR) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
DHR ended the week -0.44% lower at 131.10 after losing $1.17 (-0.88%) today, slightly underperforming the S&P 500 (-0.58%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (DHR as at May 17, 2019):
Friday's trading range has been $2.03 (1.55%), that's slightly below the last trading month's daily average range of $2.28. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DHR.
One bearish candlestick pattern matches today's price action, the Shooting Star.
The market closed back below the 20-day moving average at 131.13. When this moving average was crossed below the last time on Monday, DHR actually gained 1.00% on the following trading day. After having been unable to move above 133.14 in the prior session, Danaher ran into sellers again around the same price level today, failing to move higher than 132.89.
Although the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 133.14 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 128.98 where further sell stops could get triggered. With prices trading close to this year's high at 134.67, upside momentum might accelerate should the share be able to break out to new highs for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Danaher. Out of 50 times, DHR closed higher 56.00% 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 64.00% with an average market move of 0.77%.