IEX closes lower for the 2nd day in a row
IDEX Corporation (IEX) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, IEX ended the week 1.37% higher at 150.45 after losing $1.11 (-0.73%) today, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (IEX as at May 22, 2020):
Friday's trading range has been $3.12 (2.06%), that's below the last trading month's daily average range of $3.96. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IEX.
Prices broke below the key technical support level at 150.93 (now R1), which is likely to act as resistance going forward. The last time this happened on Tuesday, IEX actually gained 0.81% on the following trading day. After having been unable to move above 152.51 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 151.94.
IDEX shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the nearby swing high at 155.63 where further buy stops could get triggered. As prices are trading close to May's high at 157.97, upside momentum might accelerate should the market mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for IDEX. Out of 793 times, IEX closed higher 54.60% 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 60.40% with an average market move of 0.81%.