IR closes above its opening price after recovering from early selling pressure
Ingersoll-Rand plc (IR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, IR ended the month -0.28% lower at 28.12 after edging higher $0.01 (0.04%) today, significantly underperforming the S&P 500 (1.54%). Trading up to $0.36 lower after the open, Ingersoll-Rand plc 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 missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (IR as at Jun 30, 2020):
Tuesday's trading range has been $0.82 (2.94%), that's below the last trading month's daily average range of $1.26. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IR. Prices continued to consolidate within a tight trading range between 27.08 and 28.37 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on June 4th, IR gained 8.34% on the following trading day.
After having been unable to move above 28.30 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 28.37.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might accelerate should prices move below the nearby swing low at 26.72 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Ingersoll-Rand plc. Out of 101 times, IR closed higher 55.45% 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 57.43% with an average market move of 1.51%.