ING closes within prior day's range
ING Group N.V. (ING) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ING finished the week 7.79% higher at 5.67 after edging lower $0.02 (-0.35%) today on low volume, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ING as at May 22, 2020):
Friday's trading range has been $0.16 (2.77%), that's slightly below the last trading month's daily average range of $0.18. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ING.
Notwithstanding a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After having been unable to move lower than 5.66 in the prior session, the share found buyers again around the same price level today at 5.63. The last time this happened on Tuesday, ING gained 4.89% on the following trading day.
Though the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the nearby swing high at 5.85 where further buy stops might get activated. Further buying could move prices higher should the market test April's close-by high at 6.05.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for ING Group. Out of 315 times, ING closed higher 49.84% 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 56.51% with an average market move of 0.82%.