DVA closes higher for the 2nd day in a row
DaVita Inc. (DVA) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, DVA ended Tuesday at 55.32 edging higher $0.15 (0.27%) on high volume, slightly outperforming the S&P 500 (0.05%). Trading $0.95 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (DVA as at Apr 16, 2019):
Tuesday's trading range has been $1.46 (2.63%), that's above the last trading month's daily average range of $1.11. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for DVA.
One bearish candlestick pattern matches today's price action, the Shooting Star.
The market managed to close back above the 50-day moving average at 55.17 for the first time since April 10th. After spiking up to 56.55 during the day, DaVita found resistance at the 100-day moving average at 55.98. The last time this happened on June 7, 2018, DVA actually gained 3.06% on the following trading day.
Although the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 100" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for DaVita. Out of 15 times, DVA closed higher 60.00% 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 66.67% with an average market move of 1.09%.