ILMN finds buyers again around 250.52
Illumina Inc. (ILMN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
ILMN finished Thursday at 274.42 surging $26.10 (10.51%), strongly outperforming the Nasdaq 100 (5.72%). This is the biggest single-day gain in over a year. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 259.21, the share confirmed its breakout through the previous session high after trading up to $17.37 above it intraday.
Daily Candlestick Chart (ILMN as at Mar 26, 2020):
Thursday's trading range has been $26.06 (10.34%), that's far above the last trading month's daily average range of $17.48. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ILMN.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close back above the 20-day moving average at 250.38. After having been unable to move lower than 247.31 in the prior session, the stock found buyers again around the same price level today at 250.52. The last time this happened on March 19th, ILMN gained 7.65% on the following trading day.
Though Illumina is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
As prices are trading close to March's high at 285.34, upside momentum could accelerate should ILMN mark new highs for the month.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Illumina. Out of 590 times, ILMN closed higher 53.90% 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 61.02% with an average market move of 1.58%.