IEX pushes through Wednesday's high
IDEX Corporation (IEX) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
IEX finished Thursday at 125.81 gaining $6.45 (5.4%) on high volume, underperforming the S&P 500 (6.24%). Closing above Wednesday's high at 125.07, the share confirmed its breakout through the prior session high after trading up to $2.40 above it intraday.
Daily Candlestick Chart (IEX as at Mar 26, 2020):
Thursday's trading range has been $10.45 (8.72%), that's above the last trading month's daily average range of $8.21. 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 IEX.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 126.35 (R1), the market closed below it after spiking up to 127.47 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move lower than 118.54 in the previous session, the stock found buyers again around the same price level today at 117.02. The last time this happened on March 13th, IEX actually lost -11.58% 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.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for IDEX. Out of 481 times, IEX closed higher 54.68% 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 62.16% with an average market move of 0.64%.