IT finds buyers again around 143.73
Gartner Inc. (IT) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
IT finished the week 2.68% higher at 145.04 after gaining $0.91 (0.63%) today on high volume, slightly outperforming the S&P 500 (0.5%). Today's close at 145.04 marks the highest recorded closing price since December 6, 2018. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (IT as at Mar 15, 2019):
Friday's trading range has been $2.03 (1.41%), that's slightly above the last trading month's daily average range of $1.96. 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 notably lower than usual for IT. Prices continued to consolidate within a tight trading range between 143.33 and 145.76 where it has been caught now for the last three trading days.
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. The last time a Bearish Hikkake Pattern showed up on January 25th, IT actually gained 0.24% on the following trading day.
After trading down to 143.73 earlier during the day, Gartner bounced off the key technical support level at 143.75 (S1). The failure to close below the support could increase that levels significance as support going forward. After having been unable to move lower than 143.44 in the previous session, the share found buyers again around the same price level today at 143.73.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might accelerate should prices move below the nearby swing low at 143.33 where further sell stops could get triggered. With prices trading close to this year's high at 145.84, upside momentum might speed up should the stock be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Gartner. Out of 437 times, IT closed higher 58.12% 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 62.24% with an average market move of 1.40%.