DLPH loses $0.48 (-3.08%) after posting strong earnings
Delphi Technologies PLC (DLPH) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
DLPH ended the week 1.61% higher at 15.12 after losing $0.48 (-3.08%) today, significantly underperforming the S&P 500 (0.18%) following Thursday's earnings report. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (DLPH as at Feb 14, 2020):
DLPH reported earnings of $0.62 per share after Thursday's market close. With analysts having expected an EPS of $0.51, Delphi Technologies PLC surpassed market expectations by 21.6%. The company's last earnings report was released on Oct. 31, 2019, when Delphi Technologies PLC reported earnings of $0.56 per share failing market expectations by -1.8%.
Friday's trading range has been $0.88 (5.61%), that's far above the last trading month's daily average range of $0.52. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DLPH. Prices continued to consolidate within a tight trading range between 14.69 and 15.70 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on Monday, DLPH actually gained 2.78% on the following trading day. In spite of a strong opening the share closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 14.72 (S1). After having been unable to move lower than 14.90 in the prior session, Delphi Technologies found buyers again around the same price level today at 14.82.
Although the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the close-by swing low at 14.69 where further sell stops could get activated. With prices trading close to this year's high at 16.30, upside momentum might accelerate should the market be able to break out to new highs for the year. As prices are trading close to February's high at 15.71, upside momentum could speed up should DLPH mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post strong Earnings Report" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Delphi Technologies. Out of 5 times, DLPH closed higher 80.00% 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 two trading days, showing a win rate of 80.00% with an average market move of 0.73%.