ISRG pushes through Thursday's high
Intuitive Surgical Inc. (ISRG) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ISRG ended the week 8.15% higher at 562.80 after gaining $16.85 (3.09%) today, strongly outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Today's close at 562.80 marks the highest recorded closing price since March 5th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 554.40, the stock confirmed its breakout through the previous session high after trading up to $8.73 above it intraday.
Daily Candlestick Chart (ISRG as at May 22, 2020):
Friday's trading range has been $19.23 (3.52%), that's above the last trading month's daily average range of $14.90. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ISRG.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Buyers managed to take out the key technical resistance level at 555.46 (now S1), which is likely to act as support going forward. After having been unable to move lower than 543.81 in the prior session, the market found buyers again around the same price level today at 543.90. The last time this happened on Tuesday, ISRG gained 4.01% on the following trading day.
Crossing above the upper Bollinger Band for the first time since Wednesday, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 524.47 or signal the beginning of a strong momentum breakout leading to even higher prices.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Trading close to March's high at 583.72 we might see further upside momentum if potential buy stops at the level get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Intuitive Surgical. Out of 145 times, ISRG 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 58.62% with an average market move of 0.47%.