DOV closes higher for the 4th day in a row
Dover Corporation (DOV) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, DOV ended Wednesday at 115.34 gaining $1.36 (1.19%), significantly outperforming the S&P 500 (-0.46%). Today's close at 115.34 marks the highest recorded closing price since February 21st. Trading up to $1.08 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on August 28th, DOV actually lost -1.38% on the following trading day. Closing above Tuesday's high at 114.83, the stock confirmed its breakout through the previous session high after trading up to $1.54 above it intraday.
Daily Candlestick Chart (DOV as at Sep 16, 2020):
Wednesday's trading range has been $2.69 (2.34%), that's above the last trading month's daily average range of $2.19. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DOV.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Crossing above the upper Bollinger Band for the first time since Monday, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 111.38 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for Dover. Out of 396 times, DOV closed higher 53.28% 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 61.62% with an average market move of 0.85%.