IEX breaks back above 200-day moving average
IDEX Corporation (IEX) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
IEX finished the month 3.74% higher at 159.37 after gaining $1.90 (1.21%) today, outperforming the S&P 500 (0.48%). Today's close at 159.37 marks the highest recorded closing price since February 25th. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (IEX as at May 29, 2020):
Friday's trading range has been $3.88 (2.47%), that's slightly above the last trading month's daily average range of $3.79. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IEX.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on May 18th, IEX actually lost -2.25% on the following trading day.
The share managed to close back above the 200-day moving average at 158.58. Prices are trading close to the key technical resistance level at 162.12 (R1).
Crossing above the upper Bollinger Band for the first time since Wednesday, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 152.53 or signal the beginning of a strong momentum breakout leading to even higher prices.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 160.98 where further buy stops might get activated. Further buying could move prices higher should the market test April's close-by high at 162.12.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for IDEX. Out of 791 times, IEX closed higher 54.74% 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 60.81% with an average market move of 0.85%.