DK finds buyers at key support level
Delek US Holdings Inc. (DK) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
DK ended Wednesday at 12.38 gaining $0.55 (4.65%), notably outperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DK as at Sep 16, 2020):
Wednesday's trading range has been $1.10 (9.25%), that's above the last trading month's daily average range of $0.84. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DK. Prices continued to consolidate within a tight trading range between 11.67 and 12.88 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on August 19th, DK actually lost -2.91% on the following trading day.
After trading down to 11.67 earlier during the day, the stock bounced off the key technical support level at 11.72 (S1). The failure to close below the support could increase that levels importance as support going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Delek US. Out of 440 times, DK closed higher 54.32% 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 54.32% with an average market move of 0.81%.