DHR closes below its opening price unable to hold early session gains
Danaher Corporation (DHR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
DHR ended Wednesday at 207.05 losing $1.64 (-0.79%), slightly underperforming the S&P 500 (-0.46%). Trading $1.75 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Tuesday's low at 207.82, the stock confirmed its breakout through the prior session low after trading up to $0.94 below it intraday.
Daily Candlestick Chart (DHR as at Sep 16, 2020):
Wednesday's trading range has been $3.41 (1.64%), that's slightly below the last trading month's daily average range of $4.21. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DHR.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar.
Prices are trading close to the key technical support level at 204.04 (S1). Danaher ran into sellers again today around 210.29 for the third trading day in a row after having found sellers at 209.71 in the previous session and at 209.68 two days ago. The last time this happened on August 7th, DHR lost -1.63% on the following trading day.
Though the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 210.58, upside momentum could accelerate should DHR be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Danaher. Out of 371 times, DHR closed higher 57.95% 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 63.61% with an average market move of 1.10%.