EXP pushes through Tuesday's high
Eagle Materials Inc (EXP) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
EXP ended Wednesday at 87.95 gaining $1.98 (2.3%), strongly outperforming the S&P 500 (-0.46%). Today's close at 87.95 marks the highest recorded closing price since February 24th. Closing above Tuesday's high at 87.67, the market confirmed its breakout through the previous session high after trading up to $1.55 above it intraday.
Daily Candlestick Chart (EXP as at Sep 16, 2020):
Wednesday's trading range has been $3.51 (4.05%), that's far above the last trading month's daily average range of $2.54. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EXP.
After having been unable to move lower than 85.62 in the prior session, the share found buyers again around the same price level today at 85.71. The last time this happened on September 11th, EXP gained 3.50% on the following trading day.
Crossing above the upper Bollinger Band for the first time since Monday, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 83.06 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Eagle Materials. Out of 94 times, EXP closed lower 59.57% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after six trading days, showing a win rate of 55.32% with an average market move of -0.26%.