HEI-A dominated by bulls lifting the market higher throughout the day
Heico Corporation (HEI-A) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, HEI-A ended Thursday at 76.50 gaining $6.60 (9.44%), significantly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 73.15, the market confirmed its breakout through the previous session high after trading up to $3.35 above it intraday.
Daily Candlestick Chart (HEI-A as at Mar 26, 2020):
Thursday's trading range has been $5.18 (7.26%), that's below the last trading month's daily average range of $6.40. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for HEI-A.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, HEI-A gained 4.56% on the following trading day.
Buyers managed to take out the key technical resistance level at 73.12 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 79.55 (R1).
Though the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Heico. Out of 158 times, HEI-A closed higher 56.33% 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 57.59% with an average market move of 0.82%.