EEFT unable to break through key resistance level
Euronet Worldwide Inc. (EEFT) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EEFT finished the week 0.6% higher at 168.41 after losing $0.95 (-0.56%) today, significantly underperforming the S&P 500 (0.46%). Closing below Thursday's low at 168.52, the share confirmed its breakout through the previous session low after trading up to $1.44 below it intraday.
Daily Candlestick Chart (EEFT as at Jul 12, 2019):
Friday's trading range has been $2.78 (1.64%), that's slightly below the last trading month's daily average range of $3.19. 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 EEFT.
Unable to break through the key technical resistance level at 169.54 (R1), the stock closed below it after spiking up to 169.86 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on Tuesday, EEFT actually gained 0.62% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 171.25 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 165.63 where further sell stops might get activated. As prices are trading close to July's low at 165.03, downside momentum could speed up should the market mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Euronet Worldwide. Out of 296 times, EEFT closed higher 54.39% 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 59.46% with an average market move of 1.32%.