DOV finds support at 200-day moving average
Dover Corporation (DOV) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DOV finished the month 6.6% higher at 102.93 after losing $1.61 (-1.54%) today on high volume, notably underperforming the S&P 500 (0.77%). Closing below Thursday's low at 103.72, the share confirmed its breakout through the previous session low after trading up to $2.18 below it intraday.
Daily Candlestick Chart (DOV as at Jul 31, 2020):
Friday's trading range has been $2.52 (2.43%), that's above the last trading month's daily average range of $2.12. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DOV.
After trading as low as 101.54 during the day, the stock found support at the 200-day moving average at 102.13. The last time this happened on August 7, 2019, DOV gained 2.13% on the following trading day. Prices are trading close to the key technical resistance level at 104.57 (R1).
Although Dover 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 five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 200" stand out. Its common bullish interpretation has been confirmed for Dover. Out of 13 times, DOV closed higher 69.23% 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 76.92% with an average market move of 1.22%.