ILMN closes above its opening price after recovering from early selling pressure
Illumina Inc. (ILMN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ILMN ended the week 5.88% higher at 354.70 after gaining $5.28 (1.51%) today, strongly outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Trading up to $3.31 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Tuesday, ILMN gained 4.43% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ILMN as at May 22, 2020):
Friday's trading range has been $8.75 (2.5%), that's slightly below the last trading month's daily average range of $10.19. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ILMN.
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. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After having been unable to move above 355.96 in the prior session, Illumina ran into sellers again around the same price level today, missing to move higher than 354.86.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 359.50 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 344.05 where further sell stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Illumina. Out of 732 times, ILMN closed higher 53.01% 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 61.48% with an average market move of 1.58%.