EW breaks above 20-day moving average for the first time since February 21st
Edwards Lifesciences Corporation (EW) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EW ended Thursday at 199.44 gaining $8.51 (4.46%) on low volume, notably underperforming the S&P 500 (6.24%). Closing above Wednesday's high at 198.38, the stock confirmed its breakout through the prior session high after trading up to $3.11 above it intraday.
Daily Candlestick Chart (EW as at Mar 26, 2020):
Thursday's trading range has been $9.50 (4.91%), that's below the last trading month's daily average range of $12.92. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EW.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, EW gained 3.27% on the following trading day.
The market managed to close above the 20-day moving average at 190.85 for the first time since February 21st. Prices are trading close to the key technical resistance level at 205.39 (R1).
Although the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for Edwards Lifesciences. Out of 484 times, EW closed higher 52.69% 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 59.92% with an average market move of 1.28%.