IR runs into sellers again around 97.91
Ingersoll-Rand PLC (IR) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
IR finished the week -5.8% lower at 97.14 after gaining $1.21 (1.26%) today, slightly underperforming the S&P 500 (1.42%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (IR as at Oct 12, 2018):
Friday's trading range has been $2.19 (2.25%), that's above the last trading month's daily average range of $1.70. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for IR.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top.
The stock managed to break above the 100-day moving average at 96.08 today for the first time since June 5th. Prices are trading close to the key technical resistance level at 98.81 (R1). After having been unable to move above 98.24 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 97.91. The last time this happened on Tuesday, IR lost -4.44% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 102.26.
While Ingersoll-Rand PLC is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Its common bullish interpretation has been confirmed for Ingersoll-Rand PLC. Out of 57 times, IR closed higher 59.65% 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 54.39% with an average market move of 0.78%.