IHG.L rises to highest close since October 4, 2018
InterContinental Hotels Group (IHG.L) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
IHG.L ended Wednesday at 4555.50 surging £97.00 (2.18%), notably outperforming the FTSE 100 (0.81%). Today's close at 4555.50 marks the highest recorded closing price since October 4, 2018. Trading up to £61.00 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Tuesday's high at 4507.50, InterContinental Hotels confirmed its breakout through the previous session high after trading up to £63.50 above it intraday.
Daily Candlestick Chart (IHG.L as at Feb 13, 2019):
Wednesday's trading range has been £178.50 (4.01%), that's far above the last trading month's daily average range of £89.70. 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 slightly lower than usual for IHG.L.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
The share managed to close above the 200-day moving average at 4519.10 for the first time since October 3, 2018. Unable to break through the key technical resistance level at 4564.50 (R1), the market closed below it after spiking up to 4571.00 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on February 8th, IHG.L actually gained 1.50% on the following trading day.
Crossing above the upper Bollinger Band for the first time since February 6th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 4410.70 or signal the beginning of a strong momentum breakout leading to even higher prices.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 15 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 200" stand out. Its common bullish interpretation has been confirmed for InterContinental Hotels. Out of 42 times, IHG.L closed higher 52.38% 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 71.43% with an average market move of 1.80%.