IDXX finds buyers at key support level
IDEXX Laboratories Inc. (IDXX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, IDXX ended the week 3.73% higher at 288.78 after gaining $3.73 (1.31%) today on low volume, notably outperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 288.78 marks the highest recorded closing price since January 16th. Trading up to $1.87 lower after the open, IDEXX Laboratories managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, IDXX gained 1.52% on the following trading day. Closing above Thursday's high at 286.50, the market confirmed its breakout through the previous session high after trading up to $2.50 above it intraday.
Daily Candlestick Chart (IDXX as at Feb 14, 2020):
Friday's trading range has been $5.60 (1.96%), that's slightly below the last trading month's daily average range of $6.44. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for IDXX.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 283.40 earlier during the day, the stock bounced off the key technical support level at 283.71 (S1). The failure to close below the support could increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 290.14 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 291.50, upside momentum might accelerate should the share be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for IDEXX Laboratories. Out of 437 times, IDXX closed higher 62.70% 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 59.50% with an average market move of 1.18%.