HII slides to lowest close since November 6, 2019
Huntington Ingalls Industries Inc. (HII) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HII finished the week -8.52% lower at 246.21 after losing $4.15 (-1.66%) today on high volume, strongly underperforming the S&P 500 (0.18%). Today's close at 246.21 marks the lowest recorded closing price since November 6, 2019. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 249.08, the share confirmed its breakout through the prior session low after trading up to $3.73 below it intraday.
Daily Candlestick Chart (HII as at Feb 14, 2020):
Friday's trading range has been $7.00 (2.78%), that's above the last trading month's daily average range of $5.24. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for HII.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 245.35 during the day, the stock found support at the 100-day moving average at 245.60. The last time this happened on September 12, 2019, HII gained 0.70% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 268.11.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 100" stand out. Its common bullish interpretation has been confirmed for Huntington Ingalls. Out of 13 times, HII closed higher 76.92% 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 69.23% with an average market move of 1.52%.