ITT breaks back above 20-day moving average
ITT Inc. (ITT) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ITT finished Monday at 57.64 gaining $1.12 (1.98%), notably outperforming the S&P 500 (-0.94%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (ITT as at Jul 13, 2020):
Monday's trading range has been $1.90 (3.31%), that's slightly above the last trading month's daily average range of $1.82. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ITT.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 5th, ITT actually gained 2.35% on the following trading day.
The share managed to close back above the 20-day moving average at 56.94.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 59.39 where further buy stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for ITT. Out of 105 times, ITT closed higher 58.10% 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 58.10% with an average market move of 0.93%.