ISRG breaks back below 20-day moving average
Intuitive Surgical Inc. (ISRG) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ISRG ended Wednesday at 691.39 tanking $24.18 (-3.38%), strongly underperforming the Nasdaq 100 (-1.67%). Today's close at 691.39 marks the lowest recorded closing price since August 14th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 711.14, the market confirmed its breakout through the prior session low after trading up to $21.48 below it intraday.
Daily Candlestick Chart (ISRG as at Sep 16, 2020):
Wednesday's trading range has been $33.64 (4.67%), that's far above the last trading month's daily average range of $19.51. 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.
One bearish candlestick pattern matches today's price action, the Black Candle.
The stock closed back below the 20-day moving average at 713.47. The share ran into sellers again today around 723.30 for the third trading day in a row after having found sellers at 726.16 in the previous session and at 722.14 two days ago. The last time this happened on August 26th, ISRG actually gained 1.34% on the following trading day.
Although Intuitive Surgical is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Further selling could move prices lower should the market test August's close-by low at 671.62.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Intuitive Surgical. Out of 253 times, ISRG closed higher 61.66% 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 66.80% with an average market move of 1.66%.