DOV finds buyers again around 80.97
Dover Corporation (DOV) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
DOV ended the week -6.0% lower at 82.18 after gaining $0.84 (1.03%) today, slightly underperforming the S&P 500 (1.42%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DOV as at Oct 12, 2018):
Friday's trading range has been $1.92 (2.32%), that's far above the last trading month's daily average range of $1.32. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for DOV.
Prices are trading close to the key technical support level at 80.91 (S1). Prices are trading close to the key technical resistance level at 83.43 (R1). After having been unable to move lower than 81.13 in the prior session, Dover Corp. found buyers again around the same price level today at 80.97. The last time this happened on October 3rd, DOV gained 0.07% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 87.37.
While the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Trading close to August's low at 80.30 we might see further downside momentum if potential sell stops at the level get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Close to S1 Support" stand out. Its common bullish interpretation has been confirmed for Dover Corp.. Out of 1,156 times, DOV closed higher 54.67% 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 59.95% with an average market move of 0.95%.