DNKN closes below its opening price unable to hold early session gains
Dunkin' Brands Group Inc. (DNKN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
DNKN ended Wednesday at 77.36 edging higher $0.23 (0.3%) on high volume, outperforming the S&P 500 (-0.46%). Trading $0.80 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DNKN as at Sep 16, 2020):
Wednesday's trading range has been $1.43 (1.84%), that's slightly below the last trading month's daily average range of $1.61. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DNKN.
Prices are trading close to the key technical resistance level at 77.38 (R1). After having been unable to move lower than 76.96 in the prior session, the market found buyers again around the same price level today at 77.16. The last time this happened on August 19th, DNKN gained 0.97% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 79.78, upside momentum could accelerate should Dunkin' Brands be able to break out to new highs for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Dunkin' Brands. Out of 473 times, DNKN closed higher 53.28% 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 58.56% with an average market move of 1.10%.