ITW closes higher for the 2nd day in a row
Illinois Tool Works Inc. (ITW) Technical Analysis Report for Mar 25, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ITW ended Wednesday at 143.53 gaining $5.83 (4.23%), strongly outperforming the S&P 500 (1.15%). Closing above Tuesday's high at 138.82, the stock confirmed its breakout through the prior session high after trading up to $11.08 above it intraday.
Daily Candlestick Chart (ITW as at Mar 25, 2020):
Wednesday's trading range has been $12.30 (8.91%), that's slightly above the last trading month's daily average range of $10.92. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for ITW.
Buyers managed to take out the key technical resistance level at 139.49 (now S1), which is likely to act as support going forward. The last time this happened on March 4th, ITW actually lost -5.46% on the following trading day. Prices are trading close to the key technical resistance level at 150.00 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the three 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 Illinois Tool. Out of 238 times, ITW closed higher 51.68% 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 61.76% with an average market move of 0.72%.