IEX pushes through key technical resistance level
IDEX Corporation (IEX) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, IEX finished Monday at 171.21 surging $3.67 (2.19%), strongly outperforming the S&P 500 (0.27%). This is the biggest single-day gain in over three weeks. The last time we've seen such an unusually strong single-day gain on July 15th, IEX gained 0.20% on the following trading day. Today's close at 171.21 marks the highest recorded closing price since February 21st. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 167.56, IDEX confirmed its breakout through the prior session high after trading up to $3.69 above it intraday.
Daily Candlestick Chart (IEX as at Aug 10, 2020):
Monday's trading range has been $4.03 (2.41%), that's above the last trading month's daily average range of $2.95. 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 lower than usual for IEX.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 170.33 (now S1), which is likely to act as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 178.14, upside momentum might speed up should the market be able to break out to new highs for the year. Further buying could move prices higher should the market test July's nearby high at 172.36.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for IDEX. Out of 568 times, IEX closed higher 52.11% 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 62.32% with an average market move of 0.98%.