EFX dominated by bulls lifting the market higher throughout the day
Equifax Inc. (EFX) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EFX finished the month 11.93% higher at 171.88 after gaining $4.16 (2.48%) today, outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 168.86, the share confirmed its breakout through the prior session high after trading up to $3.78 above it intraday.
Daily Candlestick Chart (EFX as at Jun 30, 2020):
Tuesday's trading range has been $5.92 (3.54%), that's above the last trading month's daily average range of $5.00. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for EFX.
Notwithstanding a weak opening Equifax managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close back above the 20-day moving average at 171.29 for the first time since June 23rd. When this moving average was crossed above the last time on April 8th, EFX gained 1.26% on the following trading day. Prices are trading close to the key technical resistance level at 173.28 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 172.79 where further buy stops might get activated. With prices trading close to this year's high at 180.07, upside momentum could speed up should the market be able to break out to new highs for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Equifax. Out of 43 times, EFX closed higher 55.81% 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 76.74% with an average market move of 2.52%.