EQIX breaks below key technical support level
Equinix Inc. (EQIX) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, EQIX ended Monday at 782.74 losing $8.96 (-1.13%), strongly underperforming the S&P 500 (0.27%). Closing below Friday's low at 788.44, Equinix confirmed its breakout through the previous session low after trading up to $8.41 below it intraday.
Daily Candlestick Chart (EQIX as at Aug 10, 2020):
Monday's trading range has been $25.78 (3.23%), that's far above the last trading month's daily average range of $14.97. 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 higher than usual for EQIX.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. In spite of a strong opening the share closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on July 28th, EQIX actually gained 2.32% on the following trading day.
Prices broke below the key technical support level at 787.70 (now R1), which is likely to act as resistance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 775.03 where further sell stops could get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Equinix. Out of 118 times, EQIX closed higher 59.32% 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 65.25% with an average market move of 1.40%.