EVR finds buyers at key support level
Evercore Inc. Class A (EVR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EVR ended the week 0.21% higher at 80.46 after losing $0.27 (-0.33%) today on low volume, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 80.49, Evercore confirmed its breakout through the previous session low after trading up to $0.70 below it intraday.
Daily Candlestick Chart (EVR as at Feb 14, 2020):
Friday's trading range has been $1.08 (1.34%), that's below the last trading month's daily average range of $2.03. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EVR.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on January 28th, EVR actually gained 9.99% on the following trading day.
After trading down to 79.79 earlier during the day, the stock bounced off the key technical support level at 80.39 (S1). The failure to close below the support might increase that levels significance as support going forward. The market closed back below the 200-day moving average at 80.54 for the first time since February 7th.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 82.58 where further buy stops might get triggered. With prices trading close to this year's high at 84.11, upside momentum could speed up should the share be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Evercore. Out of 290 times, EVR closed higher 54.14% 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 58.28% with an average market move of 0.69%.