ECL pushes through Wednesday's high
Ecolab Inc. (ECL) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
ECL ended Thursday at 161.69 gaining $9.91 (6.53%), slightly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 157.01, the stock confirmed its breakout through the previous session high after trading up to $6.20 above it intraday.
Daily Candlestick Chart (ECL as at Mar 26, 2020):
Thursday's trading range has been $10.19 (6.59%), that's slightly below the last trading month's daily average range of $12.19. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for ECL.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 157.41 (now S1), which is likely to act as support going forward. The last time this happened on Tuesday, ECL actually lost -0.78% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for Ecolab. Out of 684 times, ECL closed higher 53.07% 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 57.16% with an average market move of 0.34%.