IT finds buyers at key support level
Gartner Inc. (IT) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
IT ended Wednesday at 132.97 losing $1.22 (-0.91%), slightly underperforming the S&P 500 (-0.46%). 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 Sep 16, 2020):
Wednesday's trading range has been $3.81 (2.82%), that's above the last trading month's daily average range of $2.97. 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.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Even with a strong opening the market closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on September 11th, IT actually gained 4.67% on the following trading day.
After trading down to 132.28 earlier during the day, the share bounced off the key technical support level at 132.66 (S1). The failure to close below the support could increase that levels importance as support going forward. After having been unable to move lower than 132.48 in the previous session, the stock found buyers again around the same price level today at 132.28.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Gartner. Out of 413 times, IT closed higher 59.81% 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 61.50% with an average market move of 0.94%.