DWDP finds buyers around 59.05 for the third day in a row
DowDuPont (DWDP) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
DWDP ended the week -5.59% lower at 59.66 after gaining $0.68 (1.15%) today, performing in line with the Dow Jones (1.15%). Trading $0.74 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DWDP as at Oct 12, 2018):
Friday's trading range has been $2.05 (3.4%), that's far above the last trading month's daily average range of $1.34. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for DWDP.
Prices are trading close to the key technical support level at 58.81 (S1). The market found buyers again today around 59.05 for the third trading day in a row after having found demand at 58.81 in the prior session and at 59.01 two days ago. The last time this happened on July 6th, DWDP gained 1.24% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 65.06.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 58.81 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous two Lows" stand out. Its common bullish interpretation has been confirmed for DowDuPont. Out of 80 times, DWDP 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 55.00% with an average market move of 1.04%.