DVA breaks below Thursday's low
DaVita Inc. (DVA) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, DVA ended the week 5.7% higher at 85.98 after losing $0.26 (-0.3%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 86.00, DaVita confirmed its breakout through the previous session low after trading up to $1.22 below it intraday.
Daily Candlestick Chart (DVA as at Feb 14, 2020):
Friday's trading range has been $1.63 (1.89%), that's slightly below the last trading month's daily average range of $1.90. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DVA.
After trading down to 84.78 earlier during the day, the stock bounced off the key technical support level at 85.59 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on January 23rd, DVA gained 3.34% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for DaVita. Out of 413 times, DVA closed higher 58.35% 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 55.69% with an average market move of 0.49%.