HII closes lower for the 2nd day in a row
Huntington Ingalls Industries Inc. (HII) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HII finished the month -0.45% lower at 173.71 after losing $1.08 (-0.62%) today on high volume, notably underperforming the S&P 500 (0.77%). 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 Jul 31, 2020):
Friday's trading range has been $4.38 (2.51%), that's slightly below the last trading month's daily average range of $4.51. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HII. Prices continued to consolidate within a tight trading range between 171.24 and 177.50 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on July 8th, HII lost -3.42% on the following trading day.
The stock closed back below the 20-day moving average at 174.05.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 176.98 where further buy stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Huntington Ingalls. Out of 134 times, HII closed higher 61.94% 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 62.69% with an average market move of 1.13%.