EW dominated by bears dragging the market lower throughout the day
Edwards Lifesciences Corporation (EW) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
EW ended the week -2.96% lower at 157.21 after tanking $6.12 (-3.75%) today, strongly underperforming the S&P 500 (-2.33%) following today's NFP report. This is the biggest single-day loss in over a month. The last time we've seen such an unusually strong single-day loss on Tuesday, EW actually gained 3.80% on the following trading day. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EW as at Dec 07, 2018):
Friday's trading range has been $6.70 (4.14%), that's above the last trading month's daily average range of $5.15. 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 EW.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 153.87 (S1). After having been unable to move lower than 155.02 in the prior session, the stock found buyers again around the same price level today at 155.91.
Edwards Lifesciences shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling could accelerate should prices move below the nearby swing low at 155.02 where further sell stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Edwards Lifesciences. Out of 483 times, EW closed higher 54.24% 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 65.22% with an average market move of 1.48%.