DOV closes above its opening price after recovering from early selling pressure
Dover Corporation (DOV) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, DOV ended Thursday at 84.61 gaining $4.02 (4.99%), strongly underperforming the S&P 500 (6.24%). Trading up to $4.08 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 previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (DOV as at Mar 26, 2020):
Thursday's trading range has been $6.33 (7.69%), that's slightly below the last trading month's daily average range of $6.37. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for DOV.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 84.83 (R1). After having been unable to move above 84.83 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 84.61. The last time this happened on March 13th, DOV lost -16.31% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 84.83 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Dover. Out of 768 times, DOV closed higher 53.52% 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 59.90% with an average market move of 0.58%.