IT closes within previous day's range
Gartner Inc. (IT) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, IT finished the month 2.73% higher at 124.64 after losing $0.96 (-0.76%) today on high volume, notably underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (IT as at Jul 31, 2020):
Friday's trading range has been $2.40 (1.91%), that's slightly below the last trading month's daily average range of $2.64. Weekly volatility is also lower, being slightly 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 123.23 and 127.02 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical support level at 123.43 (S1). After having been unable to move above 125.78 in the prior session, Gartner ran into sellers again around the same price level today, failing to move higher than 126.19. The last time this happened on Tuesday, IT actually gained 2.33% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 127.02 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 123.23 where further sell stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Gartner. Out of 294 times, IT closed higher 59.86% 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 59.52% with an average market move of 0.92%.