IFF closes higher for the 2nd day in a row
Internationa Flavors & Fragrances Inc. (IFF) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, IFF ended the month -8.06% lower at 122.46 after gaining $0.58 (0.48%) today, notably underperforming the S&P 500 (1.54%). Trading up to $1.60 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 previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (IFF as at Jun 30, 2020):
Tuesday's trading range has been $3.18 (2.62%), that's slightly below the last trading month's daily average range of $3.72. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IFF. Prices continued to consolidate within a tight trading range between 118.89 and 123.81 where it has been caught now for the whole last trading week.
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.
Unable to break through the key technical resistance level at 122.70 (R1), the market closed below it after spiking up to 123.18 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 119.73 in the prior session, the stock found buyers again around the same price level today at 120.00. The last time this happened on June 25th, IFF actually lost -2.74% on the following trading day.
Internationa Flavors shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 123.42 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 118.89 where further sell 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. While it is usually interpreted as neutral, it has actually shown to be bullish for Internationa Flavors. Out of 749 times, IFF closed higher 54.61% 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 58.48% with an average market move of 0.67%.