DOX still stuck within tight trading range
Amdocs Limited (DOX) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, DOX ended the week 4.87% higher at 63.25 after gaining $0.30 (0.48%) today, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (DOX as at May 22, 2020):
Friday's trading range has been $1.25 (2.0%), that's slightly below the last trading month's daily average range of $1.62. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DOX. Prices continued to consolidate within a tight trading range between 61.11 and 63.45 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
Prices are trading close to the key technical support level at 62.54 (S1). After having been unable to move above 63.45 in the previous session, Amdocs ran into sellers again around the same price level today, failing to move higher than 63.35. The last time this happened on Wednesday, DOX actually gained 0.45% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the close-by swing high at 63.45 where further buy stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Amdocs. Out of 640 times, DOX closed higher 55.94% 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 60.78% with an average market move of 0.50%.