IEX closes below its opening price unable to hold early session gains
IDEX Corporation (IEX) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
IEX ended the week -2.74% lower at 133.64 after losing $1.40 (-1.04%) today on high volume, but still notably outperforming the S&P 500 (-2.33%) following today's NFP report. Trading $2.53 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Monday, IEX lost -3.38% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (IEX as at Dec 07, 2018):
Friday's trading range has been $4.05 (3.01%), that's above the last trading month's daily average range of $3.36. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IEX.
Prices are trading close to the key technical support level at 132.93 (S1). The stock closed back below the 20-day moving average at 134.46.
Although the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might accelerate should prices move below the close-by swing low at 130.27 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 50" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for IDEX. Out of 21 times, IEX closed higher 57.14% 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 66.67% with an average market move of 1.81%.