IT pushes through key technical resistance level
Gartner Inc. (IT) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, IT finished the month -0.3% lower at 121.33 after gaining $2.07 (1.74%) today, slightly outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 120.58, the market confirmed its breakout through the prior session high after trading up to $1.44 above it intraday.
Daily Candlestick Chart (IT as at Jun 30, 2020):
Tuesday's trading range has been $3.94 (3.32%), that's slightly below the last trading month's daily average range of $4.39. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower 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 119.57 (now S1), which is likely to act as support going forward. The last time this happened on June 15th, IT gained 1.16% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the close-by swing high at 123.94 where further buy stops might get activated. As prices are trading close to June's low at 114.36, downside momentum could speed up should the share mark new lows for the month.
Among the nine 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 249 times, IT closed higher 59.44% 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 65.06% with an average market move of 0.91%.