EL closes higher for the 2nd day in a row
Estee Lauder Companies Inc. (EL) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EL ended the month -4.45% lower at 188.68 after gaining $3.03 (1.63%) today, slightly 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 185.80, the market confirmed its breakout through the previous session high after trading up to $3.43 above it intraday.
Daily Candlestick Chart (EL as at Jun 30, 2020):
Tuesday's trading range has been $4.13 (2.23%), that's slightly below the last trading month's daily average range of $4.68. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for EL.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a White Candle showed up on June 18th, EL actually lost -2.98% on the following trading day.
After spiking up to 189.23 during the day, the share found resistance at the 200-day moving average at 188.92.
Estee Lauder shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the close-by swing high at 189.60 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 183.22 where further sell stops might get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 200" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Estee Lauder. Out of 24 times, EL closed higher 70.83% 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 54.17% with an average market move of 0.58%.