INFO finds buyers again around 57.89
IHS Markit Ltd. (INFO) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
INFO ended Thursday at 59.56 gaining $1.36 (2.34%), notably underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (INFO as at Mar 26, 2020):
Thursday's trading range has been $2.17 (3.73%), that's far below the last trading month's daily average range of $4.65. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for INFO.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior 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.
Buyers managed to take out the key technical resistance level at 58.55 (now S1), which is likely to act as support going forward. After having been unable to move lower than 57.02 in the previous session, the stock found buyers again around the same price level today at 57.89. The last time this happened on March 18th, INFO actually lost -6.07% on the following trading day.
Although IHS Markit is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the close-by swing high at 62.43 where further buy stops could get activated.
Among the five 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 326 times, INFO closed higher 56.44% 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 59.51% with an average market move of 0.49%.