ISBC slides to lowest close since January 15th
Investors Bancorp Inc. (ISBC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ISBC finished the week -3.15% lower at 11.69 after losing $0.12 (-1.02%) today, significantly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 11.69 marks the lowest recorded closing price since January 15th. Closing below Thursday's low at 11.78, the share confirmed its breakout through the previous session low after trading up to $0.20 below it intraday.
Daily Candlestick Chart (ISBC as at Feb 14, 2020):
Friday's trading range has been $0.25 (2.11%), that's slightly above the last trading month's daily average range of $0.23. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ISBC.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 11.53 (S1). Prices broke below the key technical support level at 11.70 (now R1), which is likely to act as resistance going forward. The last time this happened on Tuesday, ISBC actually gained 0.08% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
With prices trading close to this year's low at 11.42, downside momentum could speed up should Investors Bancorp break out to new lows for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Investors Bancorp. Out of 282 times, ISBC closed higher 55.32% 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 56.03% with an average market move of 0.60%.