IDXX dominated by bears dragging the market lower throughout the day
IDEXX Laboratories Inc. (IDXX) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
IDXX finished Wednesday at 362.36 losing $6.88 (-1.86%) on high volume, slightly underperforming the Nasdaq 100 (-1.67%). Today's close at 362.36 marks the lowest recorded closing price since July 28th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 366.95, the stock confirmed its breakout through the prior session low after trading up to $6.63 below it intraday.
Daily Candlestick Chart (IDXX as at Sep 16, 2020):
Wednesday's trading range has been $12.48 (3.35%), that's slightly above the last trading month's daily average range of $10.55. 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 IDXX.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 360.32 earlier during the day, IDEXX Laboratories bounced off the key technical support level at 361.26 (S1). The failure to close below the support could increase that levels significance as support going forward. After having been unable to move above 372.61 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 372.80. The last time this happened on Monday, IDXX actually gained 1.01% on the following trading day.
Although the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could accelerate should prices move below the close-by swing low at 360.27 where further sell stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for IDEXX Laboratories. Out of 132 times, IDXX closed higher 66.67% 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 60.61% with an average market move of 1.27%.