DXC drops to lowest close since August 25th
DXC Technology Company (DXC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DXC finished Wednesday at 19.41 losing $0.15 (-0.77%), slightly underperforming the S&P 500 (-0.46%). Today's close at 19.41 marks the lowest recorded closing price since August 25th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 19.53, the market confirmed its breakout through the previous session low after trading up to $0.18 below it intraday.
Daily Candlestick Chart (DXC as at Sep 16, 2020):
Wednesday's trading range has been $0.56 (2.82%), that's below the last trading month's daily average range of $0.82. 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.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 19.25 (S1).
Though the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the nearby swing high at 20.28 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 19.25 where further sell stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for DXC Technology. Out of 304 times, DXC closed higher 51.97% 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 seven trading days, showing a win rate of 52.63% with an average market move of -0.18%.