IT closes within previous day's range after lackluster session
Gartner Inc. (IT) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
IT finished the week -0.11% lower at 152.41 after gaining $1.53 (1.01%) today, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (IT as at Feb 14, 2020):
Friday's trading range has been $1.27 (0.84%), that's far below the last trading month's daily average range of $2.80. 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 IT. Prices continued to consolidate within a tight trading range between 150.69 and 154.07 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
The market managed to close back above the 200-day moving average at 151.81. When this moving average was crossed above the last time on Tuesday, IT actually lost -0.35% on the following trading day. Prices are trading close to the key technical resistance level at 152.84 (R1). After having been unable to move above 152.67 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 152.55.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might accelerate should prices move above the close-by swing high at 154.07 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 150.69 where further sell stops could get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 200" stand out. Its common bullish interpretation has been confirmed for Gartner. Out of 32 times, IT closed higher 59.38% 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 68.75% with an average market move of 1.41%.