ISRG closes within previous day's range
Intuitive Surgical Inc. (ISRG) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ISRG ended the month 20.29% higher at 685.44 after losing $1.95 (-0.28%) today, significantly underperforming the Nasdaq 100 (1.78%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ISRG as at Jul 31, 2020):
Friday's trading range has been $14.92 (2.17%), that's slightly below the last trading month's daily average range of $19.69. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ISRG.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and two bearish patterns, the Bearish Spinning Top and the Hanging Man.
Prices are trading close to the key technical resistance level at 699.72 (R1). After having been unable to move above 692.29 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 690.64. The last time this happened on July 21st, ISRG actually gained 3.52% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 704.00 where further buy stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for Intuitive Surgical. Out of 121 times, ISRG closed higher 56.20% 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 61.98% with an average market move of 1.15%.