DRH pushes through Monday's high
Diamondrock Hospitality Company (DRH) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, DRH ended the month -7.68% lower at 5.53 after gaining $0.17 (3.17%) today, significantly outperforming the S&P 500 (1.54%). Closing above Monday's high at 5.39, the share confirmed its breakout through the prior session high after trading up to $0.20 above it intraday.
Daily Candlestick Chart (DRH as at Jun 30, 2020):
Tuesday's trading range has been $0.33 (6.2%), that's below the last trading month's daily average range of $0.49. 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 DRH.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 5.47 (now S1), which is likely to act as support going forward. The last time this happened on June 4th, DRH gained 7.89% on the following trading day.
Diamondrock Hospitality shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could accelerate should prices move below the close-by swing low at 5.00 where further sell stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Diamondrock Hospitality. Out of 661 times, DRH closed higher 52.65% 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 52.80% with an average market move of 0.63%.