HXL rockets 4.24% on high volume
Hexcel Corporation (HXL) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
HXL finished Wednesday at 40.33 surging $1.64 (4.24%) on high volume, significantly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over three weeks. Closing above Tuesday's high at 40.22, the share confirmed its breakout through the previous session high after trading up to $0.68 above it intraday.
Daily Candlestick Chart (HXL as at Sep 16, 2020):
Wednesday's trading range has been $3.08 (7.95%), that's far above the last trading month's daily average range of $1.63. 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 HXL.
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. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Hexcel managed to close back above the 100-day moving average at 39.43. When this moving average was crossed above the last time on Monday, HXL actually lost -2.54% on the following trading day. Prices are trading close to the key technical resistance level at 41.18 (R1).
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might accelerate should prices move above the close-by swing high at 41.42 where further buy stops could get activated. As prices are trading close to September's high at 41.42, upside momentum might speed up should the market mark new highs for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Hexcel. Out of 429 times, HXL closed higher 57.34% 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 63.87% with an average market move of 1.01%.