EQH unable to break through key resistance level
AXA Equitable Holdings Inc. (EQH) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EQH finished Thursday at 15.80 gaining $0.53 (3.47%) on low volume, strongly underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (EQH as at Mar 26, 2020):
Thursday's trading range has been $1.37 (8.97%), that's slightly below the last trading month's daily average range of $1.50. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EQH.
Unable to break through the key technical resistance level at 16.24 (R1), the share closed below it after spiking up to 16.38 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on March 3rd, EQH actually gained 3.01% on the following trading day. After having been unable to move above 16.21 in the prior session, AXA Equitable ran into sellers again around the same price level today, failing to move higher than 16.38.
While the stock 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 three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for AXA Equitable. Out of 67 times, EQH closed lower 62.69% 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 56.72% with an average market move of -2.43%.