EFX closes below its opening price unable to hold early session gains
Equifax Inc. (EFX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EFX ended the week 4.72% higher at 162.96 after gaining $0.70 (0.43%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 162.96 marks the highest recorded closing price ever. Trading $1.38 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EFX as at Feb 14, 2020):
Friday's trading range has been $2.33 (1.43%), that's slightly below the last trading month's daily average range of $2.79. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EFX.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, four candlestick patterns are matching today's price action, the Bearish Doji Star, the Bearish Harami Cross Pattern and the Northern Doji which are known as bearish patterns and one neutral pattern, the Doji.
Prices are trading close to the key technical resistance level at 164.77 (R1). After having been unable to move above 164.77 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 164.38. The last time this happened on Tuesday, EFX actually gained 0.79% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 154.93.
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 164.77 where further buy stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Equifax. Out of 367 times, EFX closed higher 53.41% 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 64.31% with an average market move of 0.69%.