INTU closes within previous day's range
Intuit Inc. (INTU) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, INTU ended the week 1.13% higher at 287.61 after losing $2.39 (-0.82%) today on high volume, significantly underperforming the Nasdaq 100 (0.38%) following Thursday's earnings report. Trading up to $5.59 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 14th, INTU gained 1.47% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (INTU as at May 22, 2020):
INTU reported earnings of $4.49 per share after Thursday's market close. With analysts having expected an EPS of $4.44, Intuit Inc. surpassed market expectations by 1.1%. The company's last earnings report was released on Feb. 24, 2020, when Intuit Inc. reported earnings of $1.16 per share topping market expectations by 12.6%.
Friday's trading range has been $9.05 (3.16%), that's slightly above the last trading month's daily average range of $8.04. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for INTU.
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.
Prices are trading close to the key technical resistance level at 290.22 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 293.63 where further buy stops might get triggered. With prices trading close to this year's high at 306.89, upside momentum could speed up should the market 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 Stock Earning Report based market condition "Trading Day post Earnings Report" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Intuit. Out of 31 times, INTU closed higher 61.29% 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 67.74% with an average market move of 1.56%.