EW still stuck within tight trading range
Edwards Lifesciences Corporation (EW) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
EW finished the week 2.75% higher at 218.81 after edging higher $0.31 (0.14%) today on low volume, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (EW as at May 22, 2020):
Friday's trading range has been $4.00 (1.83%), that's far below the last trading month's daily average range of $6.16. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for EW. Prices continued to consolidate within a tight trading range between 215.00 and 221.84 where it has been caught now for the whole last trading week.
Five candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Dragonfly Doji which are both known as bullish patterns, two bearish patterns, the Hanging Man and the Northern Doji and one neutral pattern, the Doji.
After trading as low as 215.05 during the day, Edwards Lifesciences found support at the 100-day moving average at 215.18. The last time this happened on April 27th, EW actually lost -3.06% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 221.84 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 215.00 where further sell stops might get triggered. As prices are trading close to May's high at 226.00, upside momentum could speed up should the share mark new highs for the month.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Dragonfly Doji" stand out. Its common bullish interpretation has been confirmed for Edwards Lifesciences. Out of 4 times, EW closed higher 100.00% 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 three trading days, showing a win rate of 75.00% with an average market move of 0.26%.