ICE closes below its opening price unable to hold early session gains
Intercontinental Exchange Inc. (ICE) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ICE finished Wednesday at 100.91 gaining $0.38 (0.38%) on low volume, outperforming the S&P 500 (-0.46%). Trading $1.47 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ICE as at Sep 16, 2020):
Wednesday's trading range has been $1.73 (1.71%), that's slightly below the last trading month's daily average range of $1.85. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ICE.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Although the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Intercontinental. Out of 497 times, ICE closed higher 53.12% 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 59.56% with an average market move of 0.90%.