ICE runs into sellers again around 93.84
Intercontinental Exchange Inc. (ICE) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ICE ended the week 0.32% higher at 93.77 after gaining $0.91 (0.98%) today on low volume, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.74 lower after the open, Intercontinental managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, ICE actually lost -3.17% on the following trading day. Closing above Thursday's high at 93.72, the market confirmed its breakout through the prior session high after trading up to $0.12 above it intraday.
Daily Candlestick Chart (ICE as at May 22, 2020):
Friday's trading range has been $1.42 (1.52%), that's far below the last trading month's daily average range of $2.35. 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 ICE. Prices continued to consolidate within a tight trading range between 92.04 and 94.36 where it has been caught now for the last three trading days.
Prices are trading close to the key technical resistance level at 94.48 (R1). After having been unable to move above 93.72 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 93.84.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 92.04 where further sell stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Intercontinental. Out of 714 times, ICE closed higher 53.64% 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 58.68% with an average market move of 0.78%.