ELY runs into sellers around 19.73 for the third day in a row
Callaway Golf Company (ELY) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ELY finished the week -3.66% lower at 19.46 after losing $0.08 (-0.41%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.17 higher after the open, the stock 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 missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ELY as at Feb 14, 2020):
Friday's trading range has been $0.45 (2.3%), that's slightly below the last trading month's daily average range of $0.68. 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 notably higher than usual for ELY.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top.
Unable to break through the key technical resistance level at 19.65 (R1), the market closed below it after spiking up to 19.73 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. Callaway Golf ran into sellers again today around 19.73 for the third trading day in a row after having found sellers at 19.75 in the previous session and at 19.83 two days ago. The last time this happened on February 5th, ELY lost -2.22% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for Callaway Golf. Out of 103 times, ELY closed higher 54.37% 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 65.05% with an average market move of 1.00%.