XRAY breaks back below 50-day moving average
DENTSPLY SIRONA Inc. (XRAY) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
XRAY finished the month 1.23% higher at 44.60 after losing $0.64 (-1.41%) today, notably underperforming the Nasdaq 100 (1.78%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (XRAY as at Jul 31, 2020):
Friday's trading range has been $1.38 (3.07%), that's slightly above the last trading month's daily average range of $1.25. 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 lower than usual for XRAY.
Two candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Bearish Spinning Top which are both known as bearish patterns. The last time a Bearish Hikkake Pattern showed up on July 17th, XRAY lost -2.88% on the following trading day.
After trading down to 43.96 earlier during the day, the share bounced off the key technical support level at 44.56 (S1). The failure to close below the support might increase that levels significance as support going forward. The market closed back below the 50-day moving average at 44.65. DENTSPLY SIRONA ran into sellers again today around 45.34 for the third trading day in a row after having found sellers at 45.30 in the previous session and at 45.33 two days ago.
Though the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might accelerate should prices move below the close-by swing low at 43.25 where further sell stops could get activated. As prices are trading close to July's high at 45.95, upside momentum might speed up should XRAY mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 50" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for DENTSPLY SIRONA. Out of 107 times, XRAY closed higher 56.07% 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 59.81% with an average market move of 1.21%.