IPG finds support at 20-day moving average
Interpublic Group of Companies Inc. (IPG) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, IPG ended the month 5.19% higher at 18.05 after losing $0.36 (-1.96%) today, strongly underperforming the S&P 500 (0.77%).
Daily Candlestick Chart (IPG as at Jul 31, 2020):
Friday's trading range has been $0.54 (2.95%), that's slightly below the last trading month's daily average range of $0.59. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IPG.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern.
After trading as low as 17.78 during the day, the share found support at the 20-day moving average at 17.80. The last time this happened on May 22nd, IPG gained 6.37% on the following trading day. Prices are trading close to the key technical resistance level at 18.50 (R1).
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might speed up should prices move below the close-by swing low at 17.78 where further sell stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Interpublic Group. Out of 449 times, IPG closed higher 57.91% 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 55.68% with an average market move of 0.40%.