DVA closes lower for the 4th day in a row
DaVita Inc. (DVA) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, DVA ended the week -3.08% lower at 76.81 after losing $1.92 (-2.44%) today, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 78.23, the share confirmed its breakout through the prior session low after trading up to $1.71 below it intraday.
Daily Candlestick Chart (DVA as at May 22, 2020):
Friday's trading range has been $2.55 (3.23%), that's slightly below the last trading month's daily average range of $2.71. Weekly volatility is also lower, being slightly below 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 Black Candle.
The market closed below the 100-day moving average at 77.88 for the first time since May 4th. When this moving average was crossed below the last time on May 1st, DVA lost -1.82% on the following trading day.
Though DaVita is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to May's low at 74.70, downside momentum might accelerate should the stock mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for DaVita. Out of 493 times, DVA closed higher 55.58% 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 58.62% with an average market move of 0.73%.