HII runs into sellers again around 215.65
Huntington Ingalls Industries Inc. (HII) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
HII finished the week -1.59% lower at 214.72 after edging lower $0.20 (-0.09%) today, but still slightly outperforming the S&P 500 (-0.16%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (HII as at Jun 14, 2019):
Friday's trading range has been $3.71 (1.72%), that's slightly below the last trading month's daily average range of $3.96. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HII.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Hanging Man which are both known as bearish patterns. The last time a Hanging Man showed up on April 15th, HII actually gained 0.86% on the following trading day.
After trading down to 211.94 earlier during the day, Huntington Ingalls bounced off the key technical support level at 212.39 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move above 215.21 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 215.65.
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 OHLC Patterns based market condition "Bearish Spinning Top" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Huntington Ingalls. Out of 182 times, HII closed higher 57.14% 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 60.99% with an average market move of 1.01%.