EW breaks back above 20-day moving average
Edwards Lifesciences Corporation (EW) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
EW ended Tuesday at 190.39 gaining $1.16 (0.61%) on high volume, outperforming the S&P 500 (0.05%). 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 Apr 16, 2019):
Tuesday's trading range has been $3.02 (1.58%), that's slightly below the last trading month's daily average range of $3.15. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for EW.
Three candlestick patterns are matching today's price action, the Homing Pigeon and the Takuri Line which are both known as bullish patterns and one bearish pattern, the Bearish Spinning Top. The last time a Homing Pigeon showed up on December 18, 2018, EW actually lost -1.54% on the following trading day.
Edwards Lifesciences managed to close back above the 20-day moving average at 189.74.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 192.99 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 186.89 where further sell stops might get triggered. As prices are trading close to April's high at 193.96, upside momentum could speed up should the stock mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Its common bullish interpretation has been confirmed for Edwards Lifesciences. Out of 51 times, EW closed higher 66.67% 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 64.71% with an average market move of 3.00%.