INFO closes above its opening price after recovering from early selling pressure
IHS Markit Ltd. (INFO) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
INFO finished the month 6.93% higher at 80.73 after gaining $0.60 (0.75%) today on low volume, slightly underperforming the S&P 500 (0.77%). Today's close at 80.73 marks the highest recorded closing price since February 19th. Trading up to $0.93 lower after the open, IHS Markit managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 80.47, the stock confirmed its breakout through the prior session high after trading up to $0.26 above it intraday.
Daily Candlestick Chart (INFO as at Jul 31, 2020):
Friday's trading range has been $1.49 (1.86%), that's above the last trading month's daily average range of $1.20. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly 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 78.97 and 80.84 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Closing Marubozu. The last time a Bullish Closing Marubozu showed up on March 4th, INFO actually lost -3.24% on the following trading day.
Prices are trading close to the key technical resistance level at 80.84 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 80.84 where further buy stops could get activated. With prices trading close to this year's high at 81.65, upside momentum might speed up should the share be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Closing Marubozu" stand out. Its common bullish interpretation has been confirmed for IHS Markit. Out of 5 times, INFO closed higher 60.00% of the time on the next trading day after the market condition occurred.