IPG unable to break through key resistance level
Interpublic Group of Companies Inc. (IPG) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
IPG ended the week 6.3% higher at 24.47 after losing $0.59 (-2.35%) today, significantly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 24.81, the share confirmed its breakout through the previous session low after trading up to $0.40 below it intraday.
Daily Candlestick Chart (IPG as at Feb 14, 2020):
Friday's trading range has been $0.79 (3.15%), that's far above the last trading month's daily average range of $0.47. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for IPG.
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. Even with a strong opening the stock closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on February 6th, IPG lost -0.82% on the following trading day.
Prices are trading close to the key technical support level at 24.15 (S1). Unable to break through the key technical resistance level at 25.15 (R1), Interpublic Group closed below it after spiking up to 25.20 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. The market ran into sellers again today around 25.20 for the third trading day in a row after having found sellers at 25.10 in the previous session and at 25.15 two days ago.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 23.52.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Interpublic Group. Out of 99 times, IPG closed higher 57.58% of the time on the next trading day after the market condition occurred.