ISBC finds support at 50-day moving average
Investors Bancorp Inc. (ISBC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ISBC ended the week 7.48% higher at 8.19 after edging lower $0.10 (-1.21%) today on low volume, notably underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 8.25, the share confirmed its breakout through the previous session low after trading up to $0.13 below it intraday.
Daily Candlestick Chart (ISBC as at May 22, 2020):
Friday's trading range has been $0.26 (3.12%), that's far below the last trading month's daily average range of $0.43. 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 ISBC.
Regardless of a strong opening the stock 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 Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on May 11th, ISBC lost -5.28% on the following trading day.
After trading as low as 8.12 during the day, Investors Bancorp found support at the 50-day moving average at 8.16. Prices are trading close to the key technical resistance level at 8.43 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 8.45 where further buy stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 50" stand out. Its common bullish interpretation has been confirmed for Investors Bancorp. Out of 50 times, ISBC closed higher 62.00% 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 10 trading days, showing a win rate of 56.00% with an average market move of 0.09%.