ECL finds buyers again around 199.02
Ecolab Inc. (ECL) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ECL ended the week 2.95% higher at 200.50 after gaining $0.10 (0.05%) today, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $1.08 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ECL as at May 22, 2020):
Friday's trading range has been $2.55 (1.27%), that's far below the last trading month's daily average range of $4.86. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ECL.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on March 25th, ECL gained 6.53% on the following trading day.
After having been unable to move lower than 199.70 in the previous session, the market found buyers again around the same price level today at 199.02.
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 211.24, upside momentum could speed up should Ecolab be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Ecolab. Out of 533 times, ECL closed higher 54.03% 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 58.72% with an average market move of 0.68%.