IEX closes above its opening price after recovering from early selling pressure
Idex Corp (IEX) Technical Analysis Report for Oct 12, 2018
IEX ended the week -7.81% lower at 136.49 after gaining $2.31 (1.72%) today on high volume, slightly outperforming the S&P 500 (1.42%). Trading up to $3.39 lower after the open, Idex Corp managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (IEX as at Oct 12, 2018):
Friday's trading range has been $3.92 (2.88%), that's above the last trading month's daily average range of $2.72. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for IEX.
Four candlestick patterns are matching today's price action, the Dragonfly Doji, the Southern Doji and the Takuri Line which are known as bullish patterns and one neutral pattern, the Doji.
After trading down to 132.93 earlier during the day, the market bounced off the key technical support level at 134.67 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on October 4th, IEX actually lost -1.18% on the following trading day. Prices are trading close to the key technical resistance level at 138.45 (R1).
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 149.64.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Dragonfly Doji" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Idex Corp. Out of 5 times, IEX closed lower 100.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after five trading days, showing a win rate of 40.00% with an average market move of -0.15%.