DOV dominated by bulls lifting the market higher throughout the day
Dover Corporation (DOV) Technical Analysis Report for Aug 07, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, DOV finished the week 4.95% higher at 108.03 after surging $2.79 (2.65%) today, strongly outperforming the S&P 500 (0.06%). This is the biggest single-day gain in over three weeks. Today's close at 108.03 marks the highest recorded closing price since June 8th. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (DOV as at Aug 07, 2020):
Friday's trading range has been $2.73 (2.59%), that's above the last trading month's daily average range of $2.08. 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.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on July 13th, DOV actually gained 2.21% on the following trading day.
Buyers managed to take out the key technical resistance level at 107.99 (now S1), which is likely to act as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Trading close to June's high at 109.53 we might see further upside momentum if potential buy stops at the level get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Dover. Out of 45 times, DOV closed higher 51.11% 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 66.67% with an average market move of 0.67%.