DRI closes within previous day's range
Darden Restaurants Inc. (DRI) Technical Analysis Report for Feb 20, 2020 | by Techniquant Editorial Team
DRI finished Thursday at 120.68 flat on low volume, slightly outperforming the S&P 500 (-0.38%). Trading up to $0.98 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on February 13th, DRI actually lost -0.46% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DRI as at Feb 20, 2020):
Thursday's trading range has been $1.58 (1.31%), that's slightly below the last trading month's daily average range of $1.94. 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 DRI.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Bullish Spinning Top which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 121.27 (R1). After having been unable to move above 121.22 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 121.00.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 119.01 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for Darden Restaurants. Out of 136 times, DRI closed higher 58.09% 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 59.56% with an average market move of 0.81%.