EQIX soars, gaining $25.62 (3.98%) within a single day
Equinix Inc. (EQIX) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
EQIX finished the week 1.72% higher at 670.02 after surging $25.62 (3.98%) today, strongly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on March 13th, EQIX actually lost -12.66% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 653.77, the stock confirmed its breakout through the prior session high after trading up to $17.64 above it intraday.
Daily Candlestick Chart (EQIX as at May 22, 2020):
Friday's trading range has been $29.49 (4.59%), that's far above the last trading month's daily average range of $20.46. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EQIX.
Regardless of a weak opening Equinix managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 660.00 (now S1), which is likely to act as support going forward. After having been unable to move lower than 639.43 in the prior session, the market found buyers again around the same price level today at 641.92.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 671.60.
Although the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the nearby swing high at 680.75 where further buy stops could get triggered. With prices trading close to this year's high at 715.75, upside momentum might speed up should EQIX be able to break out to new highs for the year. As prices are trading close to May's high at 701.15, upside momentum could accelerate should the stock mark new highs for the month.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Equinix. Out of 52 times, EQIX closed higher 63.46% 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 55.77% with an average market move of 0.97%.