DLPH declines to lowest close since August 7th
Delphi Technologies PLC (DLPH) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DLPH ended Wednesday at 16.93 tanking $1.19 (-6.57%), significantly underperforming the S&P 500 (-0.46%). This is the biggest single-day loss in over three months. Today's close at 16.93 marks the lowest recorded closing price since August 7th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 18.10, the market confirmed its breakout through the previous session low after trading up to $1.21 below it intraday.
Daily Candlestick Chart (DLPH as at Sep 16, 2020):
Wednesday's trading range has been $1.30 (7.15%), that's far above the last trading month's daily average range of $0.51. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DLPH.
Two candlestick patterns are matching today's price action, the Bearish Belt-hold and the Black Candle which are both known as bearish patterns.
The share closed below the 20-day moving average at 17.74 for the first time since July 31st.
Crossing below the lower Bollinger Band for the first time since March 18th, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 17.74 or signal the beginning of a strong momentum breakout leading to even lower prices. The last time prices broke out below the lower Bollinger Band on March 16th, DLPH lost -3.57% on the following trading day.
Though 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 14 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the lower Bollinger Band" stand out. Its common bearish interpretation has been confirmed for Delphi Technologies. Out of 20 times, DLPH closed lower 75.00% 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 70.00% with an average market move of -4.82%.