EW pushes through Thursday's high
Edwards Lifesciences Corporation (EW) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
EW finished the week -0.8% lower at 230.55 after gaining $4.01 (1.77%) today on low volume, significantly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing above Thursday's high at 229.43, the market confirmed its breakout through the prior session high after trading up to $1.34 above it intraday.
Daily Candlestick Chart (EW as at Feb 14, 2020):
Friday's trading range has been $3.74 (1.64%), that's slightly below the last trading month's daily average range of $6.35. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EW. Prices continued to consolidate within a tight trading range between 224.67 and 232.00 where it has been caught now for the whole last trading week.
Three candlestick patterns are matching today's price action, the Morning Star and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on February 4th, EW actually gained 2.11% on the following trading day.
Unable to break through the key technical resistance level at 230.56 (R1), Edwards Lifesciences closed below it after spiking up to 230.77 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could speed up should prices move above the close-by swing high at 231.94 where further buy stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Edwards Lifesciences. Out of 139 times, EW closed higher 58.27% 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 57.55% with an average market move of 0.95%.