XRAY finds buyers at key support level
DENTSPLY SIRONA Inc. (XRAY) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
XRAY finished the week 1.31% higher at 57.85 after losing $0.26 (-0.45%) today, underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $1.46 lower after the open, the stock 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 (XRAY as at Feb 14, 2020):
Friday's trading range has been $1.61 (2.78%), that's slightly above the last trading month's daily average range of $1.23. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for XRAY. Prices continued to consolidate within a tight trading range between 56.38 and 58.26 where it has been caught now for the whole last trading week.
Four candlestick patterns are matching today's price action, the Dragonfly Doji which is known as bullish pattern, two bearish patterns, the Hanging Man and the Northern Doji and one neutral pattern, the Doji.
After trading down to 56.38 earlier during the day, the share bounced off the key technical support level at 56.93 (S1). The failure to close below the support could increase that levels significance as support going forward. Unable to break through the key technical resistance level at 57.88 (R1), the market closed below it after spiking up to 57.99 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on January 27th, XRAY lost -1.09% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 58.26 where further buy stops might get triggered. As prices are trading close to February's high at 59.17, upside momentum could accelerate should DENTSPLY SIRONA mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Dragonfly Doji" stand out. Its common bullish interpretation has been confirmed for DENTSPLY SIRONA. Out of 4 times, XRAY closed higher 75.00% 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 50.00% with an average market move of 1.77%.