DXC closes within prior day's range
DXC Technology Company (DXC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
DXC finished the week -5.75% lower at 30.82 after edging higher $0.18 (0.59%) today on high volume, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.65 lower after the open, DXC Technology managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on February 4th, DXC gained 4.36% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (DXC as at Feb 14, 2020):
Friday's trading range has been $1.00 (3.26%), that's slightly below the last trading month's daily average range of $1.20. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DXC.
After moving lower in the previous session, the market managed to close higher but below the prior day's open, forming a bullish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Spinning Top and the Takuri Line which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 31.38 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for DXC Technology. Out of 46 times, DXC closed higher 60.87% 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 65.22% with an average market move of 1.94%.