A closes below its opening price unable to hold early session gains
Agilent Technologies Inc. (A) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
A finished the week 4.15% higher at 84.98 after surging $4.23 (5.24%) today on high volume, strongly outperforming the S&P 500 (0.24%) following Thursday's earnings report. This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on March 4th, A actually lost -4.61% on the following trading day. Today's close at 84.98 marks the highest recorded closing price since February 21st. Trading $2.67 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (A as at May 22, 2020):
A reported earnings of $0.71 per share after Thursday's market close. With analysts having expected an EPS of $0.58, Agilent Technologies Inc. beat market expectations by 22.4%. The company's last earnings report was released on Feb. 18, 2020, when Agilent Technologies Inc. reported earnings of $0.81 per share hitting market expectations.
Friday's trading range has been $3.47 (4.08%), that's far above the last trading month's daily average range of $2.13. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for A.
Three candlestick patterns are matching today's price action, the Gravestone Doji and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji.
Unable to break through the key technical resistance level at 85.00 (R1), the stock closed below it after spiking up to 87.67 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 90.64, upside momentum could accelerate should the market be able to break out to new highs for the year.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Gravestone Doji" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Agilent Technologies. Out of 25 times, A closed higher 64.00% 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 68.00% with an average market move of 1.73%.