EW pushes through Monday's high
Edwards Lifesciences Corporation (EW) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EW finished the month -7.74% lower at 69.11 after gaining $1.22 (1.8%) today on low volume, slightly outperforming the S&P 500 (1.54%). Closing above Monday's high at 68.10, Edwards Lifesciences confirmed its breakout through the previous session high after trading up to $1.23 above it intraday.
Daily Candlestick Chart (EW as at Jun 30, 2020):
Tuesday's trading range has been $2.05 (3.02%), that's slightly below the last trading month's daily average range of $2.43. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EW.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 69.08 (now S1), which is likely to act as support going forward. The last time this happened on June 15th, EW gained 1.81% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 66.73 where further sell stops might get activated. As prices are trading close to June's low at 66.23, downside momentum could speed up should the stock mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Edwards Lifesciences. Out of 317 times, EW closed higher 53.94% 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 61.51% with an average market move of 1.23%.