IR finds support at 200-day moving average
Ingersoll-Rand plc (IR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, IR finished the month 12.34% higher at 31.59 after losing $0.22 (-0.69%) today, significantly underperforming the S&P 500 (0.77%). Trading $0.42 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (IR as at Jul 31, 2020):
Friday's trading range has been $1.07 (3.38%), that's far above the last trading month's daily average range of $0.80. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IR. Prices continued to consolidate within a tight trading range between 31.01 and 32.16 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns. The last time a Bearish High-Wave Candle showed up on April 28th, IR actually gained 3.59% on the following trading day.
After trading as low as 31.01 during the day, Ingersoll-Rand plc found support at the 200-day moving average at 31.03.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 32.16 where further buy stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 200" stand out. Its common bullish interpretation has been confirmed for Ingersoll-Rand plc. Out of 1 times, IR closed higher 100.00% 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 two trading days, showing a win rate of 100.00% with an average market move of 0.86%.