HII finds buyers again around 173.23
Huntington Ingalls Industries Inc. (HII) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
HII ended the month -12.71% lower at 174.49 after losing $2.92 (-1.65%) today, strongly underperforming the S&P 500 (1.54%). Trading $1.93 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (HII as at Jun 30, 2020):
Tuesday's trading range has been $4.86 (2.76%), that's below the last trading month's daily average range of $6.18. 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.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. After moving higher in the previous session, the share closed lower but above the prior day's open today, forming a bearish Harami Candle.
Prices are trading close to the key technical support level at 171.70 (S1). After having been unable to move lower than 173.46 in the previous session, Huntington Ingalls found buyers again around the same price level today at 173.23. The last time this happened on June 23rd, HII actually lost -5.62% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 179.85 where further buy stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Candle" stand out. Its common bearish interpretation has been confirmed for Huntington Ingalls. Out of 54 times, HII closed lower 59.26% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after four trading days, showing a win rate of 59.26% with an average market move of -0.15%.