IT closes above its opening price after recovering from early selling pressure
Gartner Inc. (IT) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
IT finished the week 5.45% higher at 117.61 after gaining $1.34 (1.15%) today on low volume, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $2.55 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (IT as at May 22, 2020):
Friday's trading range has been $3.93 (3.36%), that's slightly below the last trading month's daily average range of $4.53. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IT. Prices continued to consolidate within a tight trading range between 114.43 and 120.67 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Bullish Spinning Top showed up on April 9th, IT actually lost -1.04% on the following trading day.
Prices are trading close to the key technical resistance level at 120.67 (R1).
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the nearby swing high at 120.67 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Gartner. Out of 813 times, IT closed higher 54.98% 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 62.61% with an average market move of 0.88%.