INFO still stuck within tight trading range
IHS Markit Ltd. (INFO) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, INFO ended Tuesday at 55.17 gaining $0.04 (0.07%), slightly outperforming the S&P 500 (0.05%). Today's close at 55.17 marks the highest recorded closing price since March 21st. Trading $0.16 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (INFO as at Apr 16, 2019):
Tuesday's trading range has been $0.37 (0.67%), that's below the last trading month's daily average range of $0.67. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for INFO. Prices continued to consolidate within a tight trading range between 54.77 and 55.46 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on April 9th, INFO actually gained 0.18% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 54.77 where further sell stops might get activated. With prices trading close to this year's high at 55.62, upside momentum could speed up should the share be able to break out to new highs for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for IHS Markit. Out of 20 times, INFO closed lower 50.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after three trading days, showing a win rate of 65.00% with an average market move of -0.57%.