HII closes higher for the 3rd day in a row
Huntington Ingalls Industries Inc. (HII) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, HII finished the week 7.17% higher at 182.77 after edging higher $1.27 (0.7%) today, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 182.77 marks the highest recorded closing price since May 1st. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (HII as at May 22, 2020):
Friday's trading range has been $6.38 (3.47%), that's slightly below the last trading month's daily average range of $6.71. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HII.
One bearish candlestick pattern matches today's price action, the Hanging Man.
After having been unable to move lower than 177.43 in the prior session, the stock found buyers again around the same price level today at 178.23. The last time this happened on Wednesday, HII gained 3.65% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
As prices are trading close to May's high at 189.33, upside momentum might speed up should the market mark new highs for the month.
Among the three 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 Huntington Ingalls. Out of 169 times, HII closed higher 52.66% 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 57.99% with an average market move of 0.58%.