DHR climbs to highest close ever
Danaher Corporation (DHR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, DHR finished the month 15.25% higher at 203.80 after gaining $1.66 (0.82%) today on low volume, slightly outperforming the S&P 500 (0.77%). Today's close at 203.80 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 203.37, the market confirmed its breakout through the prior session high after trading up to $0.58 above it intraday.
Daily Candlestick Chart (DHR as at Jul 31, 2020):
Friday's trading range has been $3.08 (1.53%), that's below the last trading month's daily average range of $3.87. 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. Prices continued to consolidate within a tight trading range between 198.83 and 204.13 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Buyers managed to take out the key technical resistance level at 203.00 (now S1), which is likely to act as support going forward. Danaher ran into sellers again today around 203.95 for the third trading day in a row after having found sellers at 203.37 in the previous session and at 204.13 two days ago. The last time this happened on July 8th, DHR actually gained 0.57% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 204.13 where further buy stops could get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Danaher. Out of 136 times, DHR closed higher 56.62% 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 60.29% with an average market move of 0.64%.