IRTC pushes through key technical resistance level
iRhythm Technologies Inc. (IRTC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
IRTC finished the week -3.48% lower at 126.61 after gaining $4.68 (3.84%) today, notably outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing above Thursday's high at 126.16, the share confirmed its breakout through the previous session high after trading up to $2.16 above it intraday.
Daily Candlestick Chart (IRTC as at May 22, 2020):
Friday's trading range has been $6.82 (5.57%), that's slightly below the last trading month's daily average range of $7.22. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IRTC. Prices continued to consolidate within a tight trading range between 121.04 and 129.32 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 122.74 (now S1), which is likely to act as support going forward. After having been unable to move lower than 121.04 in the prior session, iRhythm Technologies found buyers again around the same price level today at 121.50. The last time this happened on May 15th, IRTC actually lost -2.26% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 121.04 where further sell stops could get activated. With prices trading close to this year's high at 136.55, upside momentum might speed up should the stock be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for iRhythm Technologies. Out of 216 times, IRTC closed higher 53.70% 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 65.28% with an average market move of 2.48%.