INST fails to close above 50-day moving average
Instructure Inc. (INST) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
INST finished the week 0.19% higher at 47.66 after surging $1.70 (3.7%) today on high volume, strongly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. This is the biggest single-day gain in over three months. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (INST as at Feb 14, 2020):
Friday's trading range has been $0.92 (1.92%), that's above the last trading month's daily average range of $0.57. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for INST.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Instructure managed to close back above the 100-day moving average at 46.77. After spiking up to 48.20 during the day, the share found resistance at the 50-day moving average at 48.12.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 47.80. The last time this happened on September 25, 2019, INST gained 1.10% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
With prices trading close to this year's high at 48.91, upside momentum could accelerate should the stock 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 Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Its common bullish interpretation has been confirmed for Instructure. Out of 24 times, INST closed higher 62.50% 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 66.67% with an average market move of 2.24%.