DVA finds buyers at key support level
DaVita Inc. (DVA) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, DVA finished Thursday at 73.74 gaining $3.54 (5.04%) on low volume, notably underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (DVA as at Mar 26, 2020):
Thursday's trading range has been $4.30 (6.06%), that's below the last trading month's daily average range of $5.44. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for DVA.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 70.46 earlier during the day, the stock bounced off the key technical support level at 70.66 (S1). The failure to close below the support could increase that levels importance as support going forward. After spiking up to 74.76 during the day, the market found resistance at the 20-day moving average at 74.69. After having been unable to move above 74.50 in the prior session, DaVita ran into sellers again around the same price level today, failing to move higher than 74.76. The last time this happened on March 19th, DVA lost -8.90% on the following trading day.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might speed up should prices move above the close-by swing high at 76.09 where further buy stops could get triggered.
Among the eight 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 411 times, DVA closed higher 58.88% 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 55.47% with an average market move of 0.46%.