IBKR closes below its opening price unable to hold early session gains
Interactive Brokers Group, Inc. (IBKR) Technical Analysis Report for Feb 20, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, IBKR ended Thursday at 57.00 gaining $1.13 (2.02%) on high volume, notably outperforming the S&P 500 (-0.38%). Today's close at 57.00 marks the highest recorded closing price since May 6, 2019. Trading $0.90 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, IBKR actually gained 1.92% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (IBKR as at Feb 20, 2020):
Thursday's trading range has been $2.12 (3.68%), that's above the last trading month's daily average range of $1.59. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for IBKR.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2019's high at 59.32 is within reach and we might see further upside momentum should the share manage to break out beyond.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Up" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Interactive Brokers. Out of 55 times, IBKR closed lower 65.45% 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 three trading days, showing a win rate of 58.18% with an average market move of -0.36%.