DY closes within prior day's range
Dycom Industries Inc. (DY) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
DY finished the month 4.74% higher at 42.83 after gaining $0.42 (0.99%) today, slightly outperforming the S&P 500 (0.77%). Trading up to $1.06 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (DY as at Jul 31, 2020):
Friday's trading range has been $1.94 (4.62%), that's above the last trading month's daily average range of $1.58. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DY.
After trading as low as 40.94 during the day, the market found support at the 50-day moving average at 41.03. The last time this happened on July 14th, DY gained 4.20% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 44.34 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Dycom. Out of 781 times, DY closed higher 51.09% 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 57.36% with an average market move of 1.26%.