EW closes higher for the 3rd day in a row
Edwards Lifesciences Corporation (EW) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EW ended Wednesday at 83.87 gaining $0.57 (0.68%), strongly outperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (EW as at Sep 16, 2020):
Wednesday's trading range has been $1.15 (1.37%), that's far below the last trading month's daily average range of $1.89. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EW.
One bearish candlestick pattern matches today's price action, the Shooting Star. The last time a Shooting Star showed up on April 30th, EW lost -3.75% on the following trading day.
Though the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the close-by swing high at 85.71 where further buy stops could get activated. With prices trading close to this year's high at 87.79, upside momentum might accelerate should the share be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Edwards Lifesciences. Out of 74 times, EW closed higher 54.05% 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 66.22% with an average market move of 1.09%.