EQIX pops to highest close ever
Equinix Inc. (EQIX) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EQIX finished the month 11.84% higher at 785.48 after gaining $7.53 (0.97%) today, slightly outperforming the S&P 500 (0.77%). Today's close at 785.48 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (EQIX as at Jul 31, 2020):
Friday's trading range has been $14.92 (1.93%), that's slightly below the last trading month's daily average range of $16.23. 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 higher than usual for EQIX.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
Prices are trading close to the key technical resistance level at 787.70 (R1). After having been unable to move lower than 770.00 in the previous session, Equinix found buyers again around the same price level today at 770.88. The last time this happened on July 24th, EQIX gained 2.25% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 734.35.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 787.70 where further buy stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Equinix. Out of 805 times, EQIX closed higher 55.03% 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 64.47% with an average market move of 1.25%.