ISRG slumps, losing $37.00 (-7.01%) within a single day on high volume
Intuitive Surgical Inc. (ISRG) Technical Analysis Report for Apr 22, 2019 | by Techniquant Editorial Team
ISRG ended Monday at 491.06 tanking $37.00 (-7.01%) on high volume, significantly underperforming the Nasdaq 100 (0.31%) following Thursday's earnings report. This is the biggest single-day loss ever recorded for the stock. Today's close at 491.06 marks the lowest recorded closing price since January 8th.
Daily Candlestick Chart (ISRG as at Apr 22, 2019):
ISRG reported earnings of $2.61 per share after Thursday's market close. With analysts having expected an EPS of $2.71, Intuitive Surgical Inc. failed market expectations by -3.7%. The company's last earnings report was released on Jan. 24, 2019, when Intuitive Surgical Inc. reported earnings of $2.96 per share failing market expectations by -0.3%.
Monday's trading range has been $19.16 (3.83%), that's above the last trading month's daily average range of $12.55. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for ISRG.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on March 6th, ISRG actually lost -0.62% on the following trading day.
Prices are trading close to the key technical support level at 483.26 (S1). The share closed back below the 200-day moving average at 528.03.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 564.47.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post weak Earnings Report" stand out. While it is usually interpreted as neutral, it has actually shown to be bearish for Intuitive Surgical. Out of 5 times, ISRG closed lower 80.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 60.00% with an average market move of -3.34%.