INTU finds support at 50-day moving average
Intuit Inc. (INTU) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
INTU finished Wednesday at 313.38 losing $9.09 (-2.82%), significantly underperforming the Nasdaq 100 (-1.67%). Today's close at 313.38 marks the lowest recorded closing price since August 19th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 319.38, the share confirmed its breakout through the previous session low after trading up to $6.77 below it intraday.
Daily Candlestick Chart (INTU as at Sep 16, 2020):
Wednesday's trading range has been $13.62 (4.19%), that's above the last trading month's daily average range of $10.05. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for INTU.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. The last time this happened on September 10th, INTU lost -1.68% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 312.61 during the day, the stock found support at the 50-day moving average at 313.17. Prices broke below the key technical support level at 319.65 (now R1), which is likely to act as resistance going forward.
Though Intuit is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the nearby swing low at 311.41 where further sell stops might get triggered. Further selling could move prices lower should the market test August's close-by low at 298.47.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Intuit. Out of 645 times, INTU closed higher 58.76% 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 62.33% with an average market move of 1.30%.