INFO closes within previous day's range
IHS Markit Ltd. (INFO) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
INFO ended the week 1.36% higher at 52.91 after losing $0.87 (-1.62%) today on high volume, underperforming the S&P 500 (-0.92%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (INFO as at Nov 09, 2018):
Friday's trading range has been $1.17 (2.19%), that's slightly above the last trading month's daily average range of $1.14. 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 strongly lower than usual for INFO.
One bearish candlestick pattern matches today's price action, the Black Candle.
The stock closed back below the 100-day moving average at 53.17. When this moving average was crossed below the last time on October 10th, INFO lost -1.29% on the following trading day. After having been unable to move lower than 52.66 in the previous session, the market found buyers again around the same price level today at 52.55.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 51.94.
IHS Markit shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could speed up should prices move above the close-by swing high at 53.90 where further buy stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 50" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for IHS Markit. Out of 34 times, INFO closed higher 64.71% 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 61.76% with an average market move of 1.03%.