IPG closes above its opening price after recovering from early selling pressure
Interpublic Group of Companies Inc. (IPG) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
IPG finished the week 7.22% higher at 16.48 after edging higher $0.15 (0.92%) today on low volume, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.20 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (IPG as at May 22, 2020):
Friday's trading range has been $0.38 (2.33%), that's far below the last trading month's daily average range of $0.79. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IPG. Prices continued to consolidate within a tight trading range between 15.96 and 16.84 where it has been caught now for the whole last trading week.
After trading as low as 16.14 during the day, the share found support at the 20-day moving average at 16.30. The last time this happened on Tuesday, IPG gained 3.86% on the following trading day. Prices are trading close to the key technical resistance level at 16.60 (R1).
Interpublic Group shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 16.84 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 15.96 where further sell stops could get activated. As prices are trading close to May's high at 17.40, upside momentum might accelerate should the stock mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Interpublic Group. Out of 687 times, IPG closed higher 52.11% 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 55.17% with an average market move of 0.74%.