INFO closes higher for the 4th day in a row
IHS Markit Ltd. (INFO) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, INFO ended Wednesday at 79.61 edging higher $0.13 (0.16%), outperforming the S&P 500 (-0.46%). Trading $0.64 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Monday, INFO actually gained 1.96% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (INFO as at Sep 16, 2020):
Wednesday's trading range has been $1.10 (1.37%), that's below the last trading month's daily average range of $1.56. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for INFO.
After spiking up to 80.64 during the day, IHS Markit found resistance at the 50-day moving average at 80.21.
While the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for IHS Markit. Out of 32 times, INFO closed higher 68.75% 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 65.63% with an average market move of 0.59%.