DXC closes higher for the 2nd day in a row
DXC Technology Company (DXC) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, DXC ended the month 16.12% higher at 16.50 after gaining $0.42 (2.61%) today on low volume, strongly outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 16.09, the share confirmed its breakout through the previous session high after trading up to $0.50 above it intraday.
Daily Candlestick Chart (DXC as at Jun 30, 2020):
Tuesday's trading range has been $0.72 (4.5%), that's far below the last trading month's daily average range of $1.04. 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.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
DXC Technology managed to close back above the 50-day moving average at 16.34 for the first time since June 23rd. When this moving average was crossed above the last time on June 23rd, DXC actually lost -7.39% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for DXC Technology. Out of 67 times, DXC closed higher 58.21% 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 59.70% with an average market move of 0.95%.