ILMN pushes through key technical resistance level
Illumina Inc. (ILMN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
ILMN ended the week 1.57% higher at 298.92 after gaining $7.54 (2.59%) today, notably outperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 293.62, Illumina confirmed its breakout through the prior session high after trading up to $6.45 above it intraday.
Daily Candlestick Chart (ILMN as at Feb 14, 2020):
Friday's trading range has been $7.98 (2.72%), that's slightly above the last trading month's daily average range of $6.13. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ILMN.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 293.50 (now S1), which is likely to act as support going forward. The last time this happened on January 22nd, ILMN actually lost -1.19% on the following trading day.
While the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
With prices trading close to this year's low at 288.86, downside momentum could speed up should the stock break out to new lows for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Illumina. Out of 302 times, ILMN closed higher 53.64% 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 58.28% with an average market move of 1.13%.