ECL closes below its opening price unable to hold early session gains
Ecolab Inc. (ECL) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, ECL finished Wednesday at 162.65 gaining $0.27 (0.17%), slightly underperforming the S&P 500 (0.3%). Today's close at 162.65 marks the highest recorded closing price ever. Trading $0.85 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on January 29th, ECL actually gained 1.21% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (ECL as at Feb 13, 2019):
Wednesday's trading range has been $1.49 (0.91%), that's below the last trading month's daily average range of $2.17. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ECL.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Shooting Star which are both known as bearish patterns.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Ecolab. Out of 48 times, ECL closed higher 62.50% 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 64.58% with an average market move of 1.39%.