EEFT breaks below Monday's low
Euronet Worldwide Inc. (EEFT) Technical Analysis Report for Jul 16, 2019 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, EEFT ended Tuesday at 164.52 losing $2.62 (-1.57%), strongly underperforming the S&P 500 (-0.34%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 166.55, Euronet Worldwide confirmed its breakout through the prior session low after trading up to $2.20 below it intraday.
Daily Candlestick Chart (EEFT as at Jul 16, 2019):
Tuesday's trading range has been $2.59 (1.55%), that's below the last trading month's daily average range of $3.26. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EEFT.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 163.61 (S1). The stock closed below the 20-day moving average at 165.42 for the first time since June 18th. When this moving average was crossed below the last time on June 18th, EEFT actually gained 3.37% on the following trading day.
While the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Euronet Worldwide. Out of 147 times, EEFT closed higher 59.86% 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 61.90% with an average market move of 1.10%.