ECL closes within prior day's range after lackluster session
Ecolab Inc. (ECL) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, ECL finished Wednesday at 207.82 gaining $1.19 (0.58%) on high volume, notably outperforming the S&P 500 (-0.46%). Trading $1.54 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ECL as at Sep 16, 2020):
Wednesday's trading range has been $1.89 (0.91%), that's far below the last trading month's daily average range of $3.94. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ECL. Prices continued to consolidate within a tight trading range between 204.40 and 209.54 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Shooting Star. The last time a Shooting Star showed up on August 27th, ECL actually gained 1.43% on the following trading day.
Prices are trading close to the key technical resistance level at 207.94 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Trading close to July's high at 213.41 we might see further upside momentum if potential buy stops at the level get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Ecolab. Out of 50 times, ECL closed higher 62.00% 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 66.00% with an average market move of 1.39%.