HII finds buyers around 143.97 for the third day in a row
Huntington Ingalls Industries Inc. (HII) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
HII ended Wednesday at 147.94 gaining $2.67 (1.84%), notably outperforming the S&P 500 (-0.46%). Closing above Tuesday's high at 147.14, the stock confirmed its breakout through the previous session high after trading up to $2.96 above it intraday.
Daily Candlestick Chart (HII as at Sep 16, 2020):
Wednesday's trading range has been $6.13 (4.22%), that's above the last trading month's daily average range of $4.75. Weekly volatility is also higher, being slightly above 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 143.97 and 150.10 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on August 24th, HII actually lost -2.00% on the following trading day.
Buyers managed to take out the key technical resistance level at 147.63 (now S1), which is likely to act as support going forward. Huntington Ingalls found buyers again today around 143.97 for the third trading day in a row after having found demand at 144.00 in the prior session and at 144.06 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
As prices are trading close to September's high at 154.43, upside momentum might speed up should the market mark new highs for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous two Lows" stand out. Its common bullish interpretation has been confirmed for Huntington Ingalls. Out of 127 times, HII closed higher 52.76% 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 60.63% with an average market move of 0.52%.