XRAY closes above its opening price after recovering from early selling pressure
DENTSPLY SIRONA Inc. (XRAY) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, XRAY finished the week 12.01% higher at 42.24 after gaining $0.28 (0.67%) today, slightly outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Today's close at 42.24 marks the highest recorded closing price since April 30th. Trading up to $1.26 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 prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (XRAY as at May 22, 2020):
Friday's trading range has been $1.97 (4.7%), that's slightly above the last trading month's daily average range of $1.77. 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 XRAY. Prices continued to consolidate within a tight trading range between 40.62 and 42.59 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Tweezer Top which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Hanging Man showed up on February 18th, XRAY actually gained 1.16% on the following trading day.
Prices are trading close to the key technical support level at 41.89 (S1). After having been unable to move above 42.59 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 42.59.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying could move prices higher should the market test April's close-by high at 44.56.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for DENTSPLY SIRONA. Out of 46 times, XRAY closed higher 54.35% 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 eight trading days, showing a win rate of 56.52% with an average market move of 0.01%.