IEX finds buyers at key support level
IDEX Corporation (IEX) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, IEX ended the week 1.05% higher at 135.53 after losing $1.00 (-0.73%) today on low volume, but still slightly outperforming the S&P 500 (-0.92%). Trading $0.96 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (IEX as at Nov 09, 2018):
Friday's trading range has been $2.62 (1.93%), that's slightly below the last trading month's daily average range of $3.29. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for IEX.
Two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji.
After trading down to 133.91 earlier during the day, the stock bounced off the key technical support level at 135.36 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on October 22nd, IEX actually lost -3.10% on the following trading day.
Though IDEX is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could speed up should prices move below the nearby swing low at 132.80 where further sell stops might get triggered.
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 IDEX. Out of 448 times, IEX closed higher 59.15% 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 66.52% with an average market move of 1.27%.