IFF closes below its opening price unable to hold early session gains
Internationa Flavors & Fragrances Inc. (IFF) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, IFF finished the week -2.95% lower at 135.87 after losing $0.87 (-0.64%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.83 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Wednesday, IFF lost -1.90% 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 (IFF as at Feb 14, 2020):
Friday's trading range has been $1.84 (1.35%), that's below the last trading month's daily average range of $2.98. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IFF.
Prices are trading close to the key technical support level at 135.34 (S1). Internationa Flavors closed below the 20-day moving average at 136.79 for the first time since January 9th. After having been unable to move above 136.98 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 137.54.
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Internationa Flavors. Out of 151 times, IFF closed higher 60.26% 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 64.90% with an average market move of 0.95%.