IPG pushes through Tuesday's high
Interpublic Group of Companies Inc. (IPG) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
IPG finished Wednesday at 18.52 gaining $0.47 (2.6%), strongly outperforming the S&P 500 (-0.46%). Closing above Tuesday's high at 18.29, the market confirmed its breakout through the previous session high after trading up to $0.53 above it intraday.
Daily Candlestick Chart (IPG as at Sep 16, 2020):
Wednesday's trading range has been $0.79 (4.34%), that's far above the last trading month's daily average range of $0.55. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IPG.
Unable to break through the key technical resistance level at 18.54 (R1), Interpublic Group closed below it after spiking up to 18.82 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on September 3rd, IPG lost -0.11% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Interpublic Group. Out of 452 times, IPG closed lower 51.33% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 47.79% with an average market move of -0.10%.