ECL closes below its opening price unable to hold early session gains
Ecolab Inc. (ECL) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ECL ended the week 0.81% higher at 207.31 after gaining $0.25 (0.12%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 207.31 marks the highest recorded closing price since August 19, 2019. Trading $0.57 higher after the open, Ecolab was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, ECL actually gained 1.08% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ECL as at Feb 14, 2020):
Friday's trading range has been $1.58 (0.76%), that's far below the last trading month's daily average range of $2.66. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ECL.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical resistance level at 207.50 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 208.65 where further buy stops could get activated. 2019's high at 209.87 is within reach and we might see further upside momentum should the market manage to break out beyond.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Ecolab. Out of 411 times, ECL closed higher 55.72% 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 60.58% with an average market move of 0.71%.