IPG finds support at 100-day moving average
Interpublic Group of Companies Inc. (IPG) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
IPG finished the week -2.38% lower at 22.53 after gaining $0.06 (0.27%) today on low volume, outperforming the S&P 500 (-0.58%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (IPG as at May 17, 2019):
Friday's trading range has been $0.65 (2.92%), that's far above the last trading month's daily average range of $0.47. 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 lower than usual for IPG. Prices continued to consolidate within a tight trading range between 22.13 and 22.79 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar.
After trading as low as 22.13 during the day, Interpublic Group found support at the 100-day moving average at 22.20. Unable to break through the key technical resistance level at 22.55 (R1), the market closed below it after spiking up to 22.78 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move above 22.76 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 22.78. The last time this happened on April 24th, IPG lost -1.15% on the following trading day.
Though the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 50" stand out. Its common bullish interpretation has been confirmed for Interpublic Group. Out of 46 times, IPG closed higher 56.52% 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 58.70% with an average market move of 0.36%.