ISRG runs into sellers again around 580.72
Intuitive Surgical Inc. (ISRG) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
ISRG ended Monday at 574.59 losing $5.44 (-0.94%), strongly underperforming the Nasdaq 100 (0.45%). Trading $5.92 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ISRG as at Jun 01, 2020):
Monday's trading range has been $10.04 (1.75%), that's far below the last trading month's daily average range of $15.61. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ISRG.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji. The last time a Doji showed up on March 3rd, ISRG gained 4.41% on the following trading day.
Prices are trading close to the key technical resistance level at 582.48 (R1). After having been unable to move above 581.59 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 580.72.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 585.61 where further buy stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Intuitive Surgical. Out of 406 times, ISRG closed higher 51.72% 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 61.82% with an average market move of 1.06%.