IFF pushes through key technical resistance level
Internationa Flavors & Fragrances Inc. (IFF) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
IFF ended the week 0.94% higher at 129.42 after edging higher $0.44 (0.34%) today, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $2.69 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (IFF as at May 22, 2020):
Friday's trading range has been $3.97 (3.09%), that's slightly below the last trading month's daily average range of $4.22. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for IFF.
In spite of a weak opening Internationa Flavors managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on May 15th, IFF gained 2.87% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the Hammer.
Buyers managed to take out the key technical resistance level at 129.15 (now S1), which is likely to act as support going forward.
While the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the close-by swing high at 134.68 where further buy stops could get activated.
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. Although it is usually interpreted as neutral, it has actually shown to be bullish for Internationa Flavors. Out of 751 times, IFF closed higher 54.86% 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 58.85% with an average market move of 0.71%.