IEX closes within prior day's range after lackluster session
IDEX Corporation (IEX) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
IEX finished the month 4.29% higher at 164.82 after edging higher $0.22 (0.13%) today on low volume, underperforming the S&P 500 (0.77%). Trading up to $1.46 lower after the open, IDEX managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, IEX actually lost -2.47% on the following trading day. 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 Jul 31, 2020):
Friday's trading range has been $2.28 (1.39%), that's below the last trading month's daily average range of $3.10. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IEX.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Hammer.
The market closed below the 20-day moving average at 164.83 for the first time since July 1st. After having been unable to move lower than 162.60 in the prior session, the stock found buyers again around the same price level today at 162.84.
Though the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the nearby swing low at 162.60 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hammer" stand out. Its common bullish interpretation has been confirmed for IDEX. Out of 20 times, IEX closed higher 60.00% 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 two trading days, showing a win rate of 65.00% with an average market move of 0.20%.