DRI rallies, gaining $2.71 (2.6%) within a single day
Darden Restaurants Inc. (DRI) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
DRI finished the week -1.5% lower at 106.76 after surging $2.71 (2.6%) today, significantly outperforming the S&P 500 (1.42%). This is the biggest single-day gain in over three months. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (DRI as at Oct 12, 2018):
Friday's trading range has been $2.23 (2.12%), that's slightly below the last trading month's daily average range of $2.52. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for DRI.
After moving lower in the previous session, the market managed to close higher but below the prior day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 105.53 (now S1), which is likely to act as support going forward. After spiking up to 107.36 during the day, the share found resistance at the 100-day moving average at 107.36. The last time this happened on May 4th, DRI lost -0.99% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for Darden Restaurants. Out of 43 times, DRI closed higher 65.12% 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 51.16% with an average market move of 2.48%.