DLPH closes within prior day's range after lackluster session
Delphi Technologies PLC (DLPH) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
DLPH ended the week 5.26% higher at 11.80 after losing $0.10 (-0.84%) today, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (DLPH as at May 22, 2020):
Friday's trading range has been $0.47 (3.92%), that's below the last trading month's daily average range of $0.68. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DLPH. Prices continued to consolidate within a tight trading range between 11.51 and 12.16 where it has been caught now for the whole last trading week.
Even with a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on May 12th, DLPH lost -7.78% on the following trading day.
Prices are trading close to the key technical resistance level at 12.16 (R1). The share ran into sellers again today around 11.98 for the third trading day in a row after having found sellers at 12.07 in the prior session and at 12.03 two days ago.
Delphi Technologies shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 12.07 where further buy stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Its common bearish interpretation has been confirmed for Delphi Technologies. Out of 19 times, DLPH closed lower 57.89% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 63.16% with an average market move of -4.23%.