HDS runs into sellers again around 29.27
HD Supply Holdings Inc. (HDS) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
HDS ended Thursday at 27.94 edging lower $0.28 (-0.99%) on low volume, strongly underperforming the S&P 500 (6.24%). Trading $0.62 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (HDS as at Mar 26, 2020):
Thursday's trading range has been $1.71 (5.97%), that's below the last trading month's daily average range of $2.91. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for HDS. Prices continued to consolidate within a tight trading range between 25.52 and 29.63 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 29.49 (R1). After having been unable to move above 29.63 in the previous session, HD Supply ran into sellers again around the same price level today, failing to move higher than 29.27. The last time this happened on March 20th, HDS lost -8.49% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 29.63 where further buy stops might get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for HD Supply. Out of 318 times, HDS closed higher 55.66% 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 56.60% with an average market move of 0.71%.