DLB dominated by bulls lifting the market higher throughout the day
Dolby Laboratories (DLB) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
DLB ended Thursday at 57.12 gaining $3.54 (6.61%), slightly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DLB as at Mar 26, 2020):
Thursday's trading range has been $3.95 (7.33%), that's slightly above the last trading month's daily average range of $3.77. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for DLB.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 60.08 (R1). After having been unable to move lower than 53.45 in the prior session, the stock found buyers again around the same price level today at 53.59. The last time this happened on March 10th, DLB actually lost -5.43% on the following trading day.
Though the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Dolby Laboratories. Out of 593 times, DLB closed higher 52.95% 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 51.77% with an average market move of 0.03%.