IT pushes through Thursday's high
Gartner Inc (IT) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
IT finished the week -3.85% lower at 148.79 after surging $3.74 (2.58%) today on high volume, strongly outperforming the S&P 500 (1.42%). This is the biggest single-day gain in over two months. Trading up to $2.37 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 148.54, the stock confirmed its breakout through the previous session high after trading up to $0.72 above it intraday.
Daily Candlestick Chart (IT as at Oct 12, 2018):
Friday's trading range has been $3.76 (2.54%), that's above the last trading month's daily average range of $3.03. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for IT.
One bullish candlestick pattern matches today's price action, the Hammer.
Prices are trading close to the key technical resistance level at 151.46 (R1).
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 155.12. The last time this happened on August 2nd, IT gained 2.51% on the following trading day.
While the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hammer" stand out. Its common bullish interpretation has been confirmed for Gartner Inc. Out of 28 times, IT closed higher 57.14% 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 64.29% with an average market move of 2.28%.