IPGP unable to break through key resistance level
IPG Photonics Corporation (IPGP) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, IPGP ended Wednesday at 168.37 gaining $2.16 (1.3%), significantly outperforming the S&P 500 (-0.46%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (IPGP as at Sep 16, 2020):
Wednesday's trading range has been $2.99 (1.79%), that's below the last trading month's daily average range of $4.60. 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 lower than usual for IPGP.
Prices are trading close to the key technical support level at 165.82 (S1). Unable to break through the key technical resistance level at 170.03 (R1), the stock closed below it after spiking up to 170.43 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on September 11th, IPGP actually gained 2.74% 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 Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for IPG Photonics. Out of 161 times, IPGP closed higher 59.01% 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 54.04% with an average market move of 1.08%.