INFO still stuck within tight trading range
IHS Markit Ltd. (INFO) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
INFO ended the week 0.42% higher at 80.76 after gaining $0.49 (0.61%) today on low volume, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (INFO as at Feb 14, 2020):
Friday's trading range has been $0.65 (0.81%), that's far below the last trading month's daily average range of $1.12. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for INFO. Prices continued to consolidate within a tight trading range between 80.00 and 81.63 where it has been caught now for the whole last trading week.
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, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on Monday, INFO actually lost -0.59% on the following trading day.
Prices are trading close to the key technical support level at 80.15 (S1). IHS Markit ran into sellers again today around 80.97 for the third trading day in a row after having found sellers at 81.07 in the prior session and at 80.95 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 81.07 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 80.00 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for IHS Markit. Out of 319 times, INFO closed higher 57.37% 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 60.82% with an average market move of 0.82%.