EXP closes above its opening price after recovering from early selling pressure
Eagle Materials Inc (EXP) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EXP ended the week 2.57% higher at 88.56 after gaining $0.91 (1.04%) today, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.53 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 87.79, the market confirmed its breakout through the previous session high after trading up to $0.85 above it intraday.
Daily Candlestick Chart (EXP as at Feb 14, 2020):
Friday's trading range has been $1.55 (1.77%), that's below the last trading month's daily average range of $2.45. 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 EXP. Prices continued to consolidate within a tight trading range between 86.53 and 88.72 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 89.23 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 88.91 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 86.53 where further sell stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for Eagle Materials. Out of 415 times, EXP closed higher 51.33% 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 58.55% with an average market move of 0.86%.