EFX breaks below Tuesday's low
Equifax Inc. (EFX) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EFX finished Wednesday at 159.12 losing $1.11 (-0.69%), slightly underperforming the S&P 500 (-0.46%). Today's close at 159.12 marks the lowest recorded closing price since June 1st. Closing below Tuesday's low at 159.52, the stock confirmed its breakout through the prior session low after trading up to $0.77 below it intraday.
Daily Candlestick Chart (EFX as at Sep 16, 2020):
Wednesday's trading range has been $2.62 (1.63%), that's below the last trading month's daily average range of $4.10. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EFX.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on Monday, EFX lost -1.89% on the following trading day.
Prices are trading close to the key technical support level at 157.22 (S1). Prices are trading close to the key technical resistance level at 162.04 (R1).
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Further selling might move prices lower should the market test August's nearby low at 157.22.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Equifax. Out of 301 times, EFX closed higher 57.81% 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 64.12% with an average market move of 0.79%.