DLB closes above its opening price after recovering from early selling pressure
Dolby Laboratories (DLB) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, DLB ended the month 5.66% higher at 69.60 after gaining $0.59 (0.85%) today, slightly outperforming the S&P 500 (0.77%). Trading up to $0.78 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (DLB as at Jul 31, 2020):
Friday's trading range has been $1.27 (1.84%), that's above the last trading month's daily average range of $1.11. 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 slightly higher than usual for DLB.
After trading down to 68.36 earlier during the day, the share bounced off the key technical support level at 68.59 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on June 19th, DLB gained 1.37% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 69.83 where further buy stops could get activated.
Among the seven 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 Dolby Laboratories. Out of 409 times, DLB closed higher 57.21% 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 54.52% with an average market move of 0.22%.