INGN still stuck within tight trading range
Inogen Inc (INGN) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, INGN finished the week 2.66% higher at 68.00 after edging higher $0.33 (0.49%) today on low volume, outperforming the S&P 500 (-0.16%). Today's close at 68.00 marks the highest recorded closing price since May 22nd. Trading up to $1.23 lower after the open, Inogen managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (INGN as at Jun 14, 2019):
Friday's trading range has been $1.82 (2.69%), that's below the last trading month's daily average range of $2.50. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for INGN. Prices continued to consolidate within a tight trading range between 64.31 and 68.32 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man.
After having been unable to move above 68.28 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 68.32. The last time this happened on Wednesday, INGN actually gained 0.42% on the following trading day.
While the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could speed up should prices move below the nearby swing low at 64.96 where further sell stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Inogen. Out of 46 times, INGN closed higher 63.04% 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 56.52% with an average market move of 0.54%.