DHR pops to highest close ever
Danaher Corporation (DHR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, DHR ended the month 6.13% higher at 176.83 after surging $4.45 (2.58%) today, notably outperforming the S&P 500 (1.54%). This is the biggest single-day gain in over two months. The last time we've seen such an unusually strong single-day gain on June 10th, DHR actually lost -4.51% on the following trading day. Today's close at 176.83 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 173.57, Danaher confirmed its breakout through the prior session high after trading up to $3.84 above it intraday.
Daily Candlestick Chart (DHR as at Jun 30, 2020):
Tuesday's trading range has been $5.94 (3.45%), that's far above the last trading month's daily average range of $4.09. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for DHR.
In spite of a weak opening the stock managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 172.75 (now S1), which is likely to act as support going forward. After having been unable to move lower than 171.16 in the prior session, the market found buyers again around the same price level today at 171.47.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 178.73, upside momentum could speed up should the share be able to break out to new highs for the year.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Danaher. Out of 513 times, DHR closed higher 53.22% 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 61.99% with an average market move of 1.00%.