ELY dominated by bulls lifting the market higher throughout the day
Callaway Golf Company (ELY) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ELY finished Thursday at 11.33 gaining $1.23 (12.18%), strongly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 11.00, the stock confirmed its breakout through the prior session high after trading up to $0.47 above it intraday.
Daily Candlestick Chart (ELY as at Mar 26, 2020):
Thursday's trading range has been $1.21 (11.67%), that's slightly below the last trading month's daily average range of $1.27. 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 notably higher than usual for ELY.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, ELY gained 10.87% on the following trading day.
Though Callaway Golf is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Callaway Golf. Out of 523 times, ELY closed lower 52.77% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 49.14% with an average market move of -0.59%.