ICE dominated by bulls lifting the market higher throughout the day
Intercontinental Exchange Inc. (ICE) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ICE ended the month 5.66% higher at 96.78 after surging $2.41 (2.55%) today on high volume, notably outperforming the S&P 500 (0.77%). This is the biggest single-day gain in over two months. Today's close at 96.78 marks the highest recorded closing price since June 10th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 95.38, the stock confirmed its breakout through the prior session high after trading up to $1.45 above it intraday.
Daily Candlestick Chart (ICE as at Jul 31, 2020):
Friday's trading range has been $2.92 (3.08%), that's far above the last trading month's daily average range of $1.74. 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 ICE.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 93.91 earlier during the day, the share bounced off the key technical support level at 94.20 (S2). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on March 10th, ICE actually lost -4.80% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 97.04 where further buy stops might get triggered. Further buying could move prices higher should the market test June's nearby high at 98.48.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Intercontinental. Out of 308 times, ICE closed higher 54.87% 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 58.12% with an average market move of 0.70%.