IT dominated by bears dragging the market lower throughout the day
Gartner Inc. (IT) Technical Analysis Report for Jul 16, 2019 | by Techniquant Editorial Team
IT finished Tuesday at 169.02 losing $1.85 (-1.08%), underperforming the S&P 500 (-0.34%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 169.46, the share confirmed its breakout through the prior session low after trading up to $0.59 below it intraday.
Daily Candlestick Chart (IT as at Jul 16, 2019):
Tuesday's trading range has been $2.25 (1.32%), that's slightly above the last trading month's daily average range of $2.24. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IT.
In spite of a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on June 25th, IT lost -1.77% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 168.87 earlier during the day, the market bounced off the key technical support level at 168.97 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move above 171.36 in the prior session, Gartner ran into sellers again around the same price level today, failing to move higher than 171.12.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 171.36 where further buy stops might get activated.
Among the nine 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 Gartner. Out of 251 times, IT closed higher 58.96% 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 64.54% with an average market move of 1.31%.