DOV rises to highest close ever
Dover Corporation (DOV) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
DOV finished the week 2.17% higher at 119.86 after gaining $0.30 (0.25%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 119.86 marks the highest recorded closing price ever. Trading up to $1.00 lower after the open, Dover managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (DOV as at Feb 14, 2020):
Friday's trading range has been $1.40 (1.17%), that's below the last trading month's daily average range of $1.95. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DOV. Prices continued to consolidate within a tight trading range between 118.36 and 120.11 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man.
Unable to break through the key technical resistance level at 120.04 (R1), the market closed below it after spiking up to 120.11 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on February 4th, DOV actually gained 2.36% on the following trading day. The share was sold again around 120.11 after having seen highs at 119.88, 120.07 and 119.86 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 118.36 where further sell stops might get activated. With prices trading close to this year's high at 120.20, upside momentum could accelerate should the stock be able to break out to new highs for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior three Highs" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Dover. Out of 14 times, DOV closed higher 57.14% 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 four trading days, showing a win rate of 64.29% with an average market move of 0.41%.