ICLR closes lower for the 2nd day in a row
ICON plc (ICLR) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ICLR ended the week -3.84% lower at 142.18 after edging lower $0.29 (-0.2%) today, strongly underperforming the S&P 500 (1.09%). Today's close at 142.18 marks the lowest recorded closing price since June 6th. Trading $2.54 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on September 30th, ICLR lost -2.66% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ICLR as at Oct 11, 2019):
Friday's trading range has been $3.70 (2.58%), that's slightly above the last trading month's daily average range of $3.39. 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 slightly higher than usual for ICLR.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 139.42 (S1). Unable to break through the key technical resistance level at 144.30 (R1), ICON plc closed below it after spiking up to 145.70 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling might speed up should prices move below the nearby swing low at 140.93 where further sell stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for ICON plc. Out of 256 times, ICLR closed higher 53.13% 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 65.63% with an average market move of 1.75%.