DRH closes within prior day's range
Diamondrock Hospitality Company (DRH) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
DRH finished Wednesday at 5.83 edging lower $0.01 (-0.17%), but still slightly outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (DRH as at Sep 16, 2020):
Wednesday's trading range has been $0.31 (5.31%), that's slightly above the last trading month's daily average range of $0.28. Weekly volatility is also higher, being above 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 Northern Doji which is known as bearish pattern and one neutral pattern, the Doji. The last time a Doji showed up on September 11th, DRH gained 8.68% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 6.07 where further buy stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Diamondrock Hospitality. Out of 737 times, DRH closed higher 49.66% 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 52.78% with an average market move of 0.33%.