IFF breaks above 20-day moving average for the first time since February 13th
Internationa Flavors & Fragrances Inc. (IFF) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, IFF ended Thursday at 114.55 surging $9.98 (9.54%) on low volume, significantly outperforming the S&P 500 (6.24%). This is the biggest single-day gain in over four months. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 108.60, the market confirmed its breakout through the prior session high after trading up to $5.95 above it intraday.
Daily Candlestick Chart (IFF as at Mar 26, 2020):
Thursday's trading range has been $10.17 (9.61%), that's above the last trading month's daily average range of $7.76. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IFF.
Two candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns. The last time a Bullish Closing Marubozu showed up on March 13th, IFF actually lost -6.91% on the following trading day.
The share managed to close above the 20-day moving average at 111.75 for the first time since February 13th. Prices are trading close to the key technical resistance level at 122.31 (R1).
While the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Internationa Flavors. Out of 151 times, IFF closed higher 54.30% 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 62.25% with an average market move of 0.88%.