DRI finds buyers again around 121.33
Darden Restaurants Inc. (DRI) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DRI finished the week 0.83% higher at 121.71 after losing $0.56 (-0.46%) today on low volume, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (DRI as at Feb 14, 2020):
Friday's trading range has been $1.30 (1.06%), that's below the last trading month's daily average range of $1.84. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DRI.
In spite of a strong opening Darden Restaurants closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on February 3rd, DRI actually gained 0.56% on the following trading day.
After having been unable to move lower than 121.27 in the previous session, the share found buyers again around the same price level today at 121.33.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 121.27 where further sell stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Darden Restaurants. Out of 84 times, DRI closed higher 61.90% 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 59.52% with an average market move of 0.44%.