IRDM runs into sellers around 32.00 for the third day in a row
Iridium Communications Inc (IRDM) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
IRDM ended the week 12.02% higher at 31.49 after losing $0.39 (-1.22%) today, notably underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (IRDM as at Feb 14, 2020):
Friday's trading range has been $0.70 (2.19%), that's below the last trading month's daily average range of $0.93. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for IRDM.
In spite of a strong opening the share closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Black Candle which are both known as bearish patterns. The last time a Bearish Hikkake Pattern showed up on February 3rd, IRDM actually gained 4.94% on the following trading day.
Prices are trading close to the key technical resistance level at 32.08 (R1). The market ran into sellers again today around 32.00 for the third trading day in a row after having found sellers at 31.96 in the previous session and at 32.08 two days ago.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 27.70.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 32.08 where further buy stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Iridium Communications. Out of 134 times, IRDM closed higher 54.48% 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 52.99% with an average market move of 1.15%.