ECL misses to close above 100-day moving average
Ecolab Inc. (ECL) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ECL ended the week 0.06% higher at 194.74 after gaining $1.55 (0.8%) today on low volume, slightly underperforming the S&P 500 (1.09%). Trading $2.36 higher after the open, the stock 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 (ECL as at Oct 11, 2019):
Friday's trading range has been $2.94 (1.51%), that's slightly below the last trading month's daily average range of $3.18. 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 strongly lower than usual for ECL.
Ecolab managed to close above the 20-day moving average at 194.65 for the first time since September 6th. When this moving average was crossed above the last time on September 6th, ECL actually lost -2.86% on the following trading day. After spiking up to 197.44 during the day, the share found resistance at the 100-day moving average at 197.14.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
As prices are trading close to October's high at 199.43, upside momentum might accelerate should the market mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Ecolab. Out of 489 times, ECL closed higher 56.24% 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 62.17% with an average market move of 0.83%.