DXC breaks below Thursday's low
DXC Technology Company (DXC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DXC finished the week 1.31% higher at 15.48 after losing $0.37 (-2.33%) today, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 15.81, the stock confirmed its breakout through the previous session low after trading up to $0.75 below it intraday.
Daily Candlestick Chart (DXC as at May 22, 2020):
Friday's trading range has been $0.92 (5.77%), that's slightly below the last trading month's daily average range of $1.01. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DXC.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 15.78 (now R1), which is likely to act as resistance going forward. The last time this happened on May 13th, DXC actually gained 3.34% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for DXC Technology. Out of 186 times, DXC closed higher 52.15% 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 55.91% with an average market move of 0.15%.