DHR closes above its opening price after recovering from early selling pressure
Danaher Corporation (DHR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
DHR ended the week -3.41% lower at 158.26 after gaining $0.60 (0.38%) today, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $1.24 lower after the open, Danaher managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on April 21st, DHR gained 4.23% on the following trading day. 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 May 22, 2020):
Friday's trading range has been $2.16 (1.37%), that's far below the last trading month's daily average range of $3.96. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for DHR.
One bullish candlestick pattern matches today's price action, the Hammer.
Prices are trading close to the key technical support level at 156.14 (S1). After having been unable to move lower than 156.33 in the previous session, the stock found buyers again around the same price level today at 156.52.
While the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might accelerate should prices move below the close-by swing low at 156.33 where further sell stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hammer" stand out. Its common bullish interpretation has been confirmed for Danaher. Out of 28 times, DHR closed higher 57.14% 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 64.29% with an average market move of 1.05%.