DXC closes within prior day's range
DXC Technology Company (DXC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
DXC ended Thursday at 15.31 gaining $0.81 (5.59%), underperforming the S&P 500 (6.24%). 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 Mar 26, 2020):
Thursday's trading range has been $1.72 (11.47%), that's slightly below the last trading month's daily average range of $2.13. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DXC.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Shooting Star.
Buyers managed to take out the key technical resistance level at 15.11 (now S1), which is likely to act as support going forward. The last time this happened on March 13th, DXC actually lost -28.34% on the following trading day. After having been unable to move lower than 14.38 in the prior session, the stock found buyers again around the same price level today at 14.75.
Though the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the nearby swing high at 16.70 where further buy stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for DXC Technology. Out of 202 times, DXC closed higher 57.43% 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 57.92% with an average market move of 0.87%.