ITW closes lower for the 2nd day in a row
Illinois Tool Works Inc. (ITW) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ITW finished the week 2.35% higher at 187.86 after losing $1.21 (-0.64%) today on low volume, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 187.88, the market confirmed its breakout through the previous session low after trading up to $1.76 below it intraday.
Daily Candlestick Chart (ITW as at Feb 14, 2020):
Friday's trading range has been $2.88 (1.52%), that's slightly below the last trading month's daily average range of $3.19. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for ITW.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern.
After trading down to 186.12 earlier during the day, Illinois Tool bounced off the key technical support level at 186.49 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on February 3rd, ITW gained 3.16% on the following trading day. Prices are trading close to the key technical resistance level at 190.05 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 190.05 where further buy stops could get activated.
Among the five 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 Illinois Tool. Out of 470 times, ITW closed higher 58.72% 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 58.09% with an average market move of 0.67%.