DLPH dominated by bears dragging the market lower throughout the day
Delphi Technologies PLC (DLPH) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DLPH ended the month 5.49% higher at 14.99 after tanking $0.54 (-3.48%) today, notably underperforming the S&P 500 (0.77%). The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (DLPH as at Jul 31, 2020):
Friday's trading range has been $0.65 (4.2%), that's far above the last trading month's daily average range of $0.48. Weekly volatility is also higher, being slightly above 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.
Prices are trading close to the key technical support level at 14.72 (S1). The share closed below the 20-day moving average at 15.26 for the first time since July 1st. When this moving average was crossed below the last time on July 1st, DLPH actually gained 2.90% on the following trading day.
Although Delphi Technologies is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for Delphi Technologies. Out of 86 times, DLPH closed lower 58.14% 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 63.95% with an average market move of -3.01%.