IT dominated by bulls lifting the market higher throughout the day
Gartner Inc. (IT) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
IT finished Thursday at 105.12 surging $14.81 (16.4%) on high volume, significantly outperforming the S&P 500 (6.24%). This is the biggest single-day gain ever recorded for the stock. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 94.97, the share confirmed its breakout through the prior session high after trading up to $10.63 above it intraday.
Daily Candlestick Chart (IT as at Mar 26, 2020):
Thursday's trading range has been $16.78 (18.5%), that's far above the last trading month's daily average range of $8.47. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IT.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 94.38 (now S1), which is likely to act as support going forward. The last time this happened on February 3rd, IT actually lost -6.01% on the following trading day. After spiking up to 105.60 during the day, Gartner found resistance at the 20-day moving average at 105.56.
Although the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Gartner. Out of 255 times, IT closed higher 59.22% 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 65.10% with an average market move of 0.87%.