DK finds buyers again around 39.42
Delek US Holdings Inc. (DK) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, DK ended the week -1.19% lower at 39.92 after gaining $0.30 (0.76%) today, slightly outperforming the S&P 500 (0.46%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (DK as at Jul 12, 2019):
Friday's trading range has been $1.35 (3.4%), that's slightly above the last trading month's daily average range of $1.33. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for DK. Prices continued to consolidate within a tight trading range between 39.06 and 40.99 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bullish Spinning Top showed up on July 5th, DK actually lost -1.86% on the following trading day.
Prices are trading close to the key technical support level at 39.06 (S1). Prices are trading close to the key technical resistance level at 40.80 (R1). After having been unable to move lower than 39.25 in the previous session, the market found buyers again around the same price level today at 39.42.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 40.99 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 39.06 where further sell stops might get activated. With prices trading close to this year's high at 41.85, upside momentum could speed up should Delek US 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 Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Delek US. Out of 545 times, DK closed higher 54.13% 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 55.23% with an average market move of 1.01%.