INFO rallies, gaining $2.68 (3.68%) within a single day
IHS Markit Ltd. (INFO) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, INFO finished the month 8.7% higher at 75.50 after surging $2.68 (3.68%) today, notably outperforming the S&P 500 (1.54%). This is the biggest single-day gain in over two months. The last time we've seen such an unusually strong single-day gain on June 5th, INFO gained 1.32% on the following trading day. Today's close at 75.50 marks the highest recorded closing price since February 24th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 73.26, the stock confirmed its breakout through the prior session high after trading up to $2.70 above it intraday.
Daily Candlestick Chart (INFO as at Jun 30, 2020):
Tuesday's trading range has been $3.41 (4.68%), that's far above the last trading month's daily average range of $1.95. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for INFO.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
Unable to break through the key technical resistance level at 75.69 (R1), the share closed below it after spiking up to 75.96 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move lower than 72.34 in the previous session, the market found buyers again around the same price level today at 72.55.
Crossing above the upper Bollinger Band for the first time since June 8th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 72.34 or signal the beginning of a strong momentum breakout leading to even higher prices.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for IHS Markit. Out of 55 times, INFO closed higher 56.36% 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 65.45% with an average market move of 0.49%.