HEI finds buyers again around 109.29
Heico Corporation (HEI) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
HEI finished Wednesday at 111.68 gaining $2.03 (1.85%), notably outperforming the S&P 500 (-0.46%). Closing above Tuesday's high at 111.15, Heico confirmed its breakout through the previous session high after trading up to $1.86 above it intraday.
Daily Candlestick Chart (HEI as at Sep 16, 2020):
Wednesday's trading range has been $3.72 (3.39%), that's slightly above the last trading month's daily average range of $3.14. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HEI.
Unable to break through the key technical resistance level at 112.47 (R1), the stock closed below it after spiking up to 113.01 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on September 4th, HEI lost -1.75% on the following trading day. After having been unable to move lower than 109.01 in the prior session, the market found buyers again around the same price level today at 109.29.
While the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to September's high at 115.42, upside momentum might speed up should HEI mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Heico. Out of 533 times, HEI closed higher 50.09% 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 57.60% with an average market move of 1.21%.