IIVI climbs to highest close since June 22nd
II-VI Incorporated (IIVI) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
IIVI ended the month 7.41% higher at 50.72 after gaining $1.57 (3.19%) today, significantly outperforming the S&P 500 (0.77%). Today's close at 50.72 marks the highest recorded closing price since June 22nd. Trading up to $1.63 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (IIVI as at Jul 31, 2020):
Friday's trading range has been $2.72 (5.46%), that's far above the last trading month's daily average range of $2.13. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IIVI.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on July 23rd, IIVI lost -3.16% on the following trading day.
Buyers managed to take out the key technical resistance level at 50.37 (now S1), which is likely to act as support going forward.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 45.80.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 51.90, upside momentum might speed up should II-VI Incorporated be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for II-VI Incorporated. Out of 242 times, IIVI closed lower 55.79% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 50.83% with an average market move of -0.31%.