INTU misses to close above 20-day moving average
Intuit Inc. (INTU) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
INTU ended Thursday at 248.39 gaining $15.81 (6.8%) on low volume, notably outperforming the Nasdaq 100 (5.72%). Closing above Wednesday's high at 240.74, the share confirmed its breakout through the prior session high after trading up to $8.93 above it intraday.
Daily Candlestick Chart (INTU as at Mar 26, 2020):
Thursday's trading range has been $21.16 (9.02%), that's above the last trading month's daily average range of $18.32. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for INTU.
One bullish candlestick pattern matches today's price action, the White Candle.
After spiking up to 249.67 during the day, the market found resistance at the 20-day moving average at 248.46. The last time this happened on March 5th, INTU lost -3.83% on the following trading day.
Though Intuit 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 close-by swing high at 261.40 where further buy stops might get activated.
Among the seven 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. While it is usually interpreted as bearish, it has actually shown to be bullish for Intuit. Out of 45 times, INTU closed higher 60.00% 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 68.89% with an average market move of 0.97%.