EW finds buyers around 77.79 for the third day in a row
Edwards Lifesciences Corporation (EW) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EW finished the month 13.46% higher at 78.41 after losing $0.54 (-0.68%) today, significantly underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (EW as at Jul 31, 2020):
Friday's trading range has been $1.51 (1.91%), that's below the last trading month's daily average range of $2.07. Weekly volatility is also lower, being 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 77.40 and 80.29 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical support level at 77.35 (S1). The stock found buyers again today around 77.79 for the third trading day in a row after having found demand at 77.42 in the prior session and at 77.55 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 80.29 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 77.42 where further sell stops could get activated. With prices trading close to this year's high at 81.90, upside momentum might accelerate should Edwards Lifesciences be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Edwards Lifesciences. Out of 285 times, EW closed higher 55.09% 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 61.75% with an average market move of 1.13%.