DLPH closes lower for the 4th day in a row
Delphi Automotive (DLPH) Technical Analysis Report for Oct 12, 2018
Moving lower for the 4th day in a row, DLPH finished the week -10.27% lower at 23.34 after losing $0.19 (-0.81%) today, significantly underperforming the S&P 500 (1.42%). Today's close at 23.34 marks the lowest recorded closing price since January 9, 2012. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DLPH as at Oct 12, 2018):
Friday's trading range has been $0.92 (3.85%), that's slightly below the last trading month's daily average range of $1.24. 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 DLPH.
One bearish candlestick pattern matches today's price action, the Black Candle.
After having been unable to move lower than 23.02 in the prior session, the market found buyers again around the same price level today at 23.00. The last time this happened on Monday, DLPH actually lost -10.21% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 24.60 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Delphi Automotive. Out of 42 times, DLPH closed higher 59.52% 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 six trading days, showing a win rate of 61.90% with an average market move of 0.84%.