INFO closes higher for the 4th day in a row
IHS Markit Ltd. (INFO) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, INFO ended Wednesday at 53.35 gaining $0.24 (0.45%), slightly outperforming the S&P 500 (0.3%). Today's close at 53.35 marks the highest recorded closing price since December 3, 2018. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (INFO as at Feb 13, 2019):
Wednesday's trading range has been $0.59 (1.11%), that's slightly below the last trading month's daily average range of $0.76. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for INFO.
Two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji. The last time a Doji showed up on February 1st, INFO gained 0.89% on the following trading day.
Prices are trading close to the key technical support level at 52.96 (S1).
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 although could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 51.82.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Trading close to December's high at 54.46 we could see further upside momentum if potential buy stops at the level get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for IHS Markit. Out of 75 times, INFO closed higher 52.00% 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 62.67% with an average market move of 0.20%.