DKS closes lower for the 2nd day in a row
Dick's Sporting Goods Inc (DKS) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DKS ended the week -0.34% lower at 44.07 after losing $0.70 (-1.56%) today on low volume, strongly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.47 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 44.14, the share confirmed its breakout through the previous session low after trading up to $0.10 below it intraday.
Daily Candlestick Chart (DKS as at Feb 14, 2020):
Friday's trading range has been $1.22 (2.72%), that's slightly below the last trading month's daily average range of $1.29. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DKS.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. The last time this happened on November 25, 2019, DKS actually gained 18.62% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 43.45 (S1). After having been unable to move lower than 44.14 in the prior session, the market found buyers again around the same price level today at 44.04.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling might accelerate should prices move below the nearby swing low at 43.27 where further sell stops could get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Dick's Sporting. Out of 407 times, DKS closed higher 57.74% 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 56.76% with an average market move of 0.63%.