ECL pushes through Monday's high
Ecolab Inc. (ECL) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ECL finished the month -6.41% lower at 198.95 after gaining $3.33 (1.7%) today, slightly outperforming the S&P 500 (1.54%). Closing above Monday's high at 196.43, the stock confirmed its breakout through the previous session high after trading up to $3.35 above it intraday.
Daily Candlestick Chart (ECL as at Jun 30, 2020):
Tuesday's trading range has been $5.08 (2.59%), that's slightly below the last trading month's daily average range of $6.18. 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. Prices continued to consolidate within a tight trading range between 190.98 and 199.93 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on May 28th, ECL actually gained 0.55% on the following trading day.
Buyers managed to take out the key technical resistance level at 197.96 (now S1), which is likely to act as support going forward.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the nearby swing high at 199.93 where further buy stops could get triggered.
Among the eight 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 686 times, ECL closed higher 53.35% 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 57.73% with an average market move of 0.39%.