DLPH closes above its opening price after recovering from early selling pressure
Delphi Technologies PLC (DLPH) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, DLPH ended Thursday at 10.64 gaining $0.79 (8.02%) on high volume, notably outperforming the S&P 500 (6.24%). Trading up to $0.42 lower after the open, Delphi Technologies managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Wednesday's high at 10.48, the market confirmed its breakout through the previous session high after trading up to $0.19 above it intraday.
Daily Candlestick Chart (DLPH as at Mar 26, 2020):
Thursday's trading range has been $1.13 (11.35%), 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 strongly higher than usual for DLPH.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical support level at 9.52 (S1). Prices are trading close to the key technical resistance level at 11.25 (R1). After having been unable to move above 10.48 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 10.67. The last time this happened on March 19th, DLPH actually gained 5.20% on the following trading day.
Though the share 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 seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for Delphi Technologies. Out of 351 times, DLPH closed higher 54.99% 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 57.26% with an average market move of 0.45%.