ITW closes higher for the 2nd day in a row
Illinois Tool Works Inc. (ITW) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ITW ended the month 1.39% higher at 174.85 after gaining $4.45 (2.61%) today, strongly outperforming the S&P 500 (1.54%). Today's close at 174.85 marks the highest recorded closing price since June 9th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 171.34, the stock confirmed its breakout through the prior session high after trading up to $4.37 above it intraday.
Daily Candlestick Chart (ITW as at Jun 30, 2020):
Tuesday's trading range has been $5.70 (3.35%), that's above the last trading month's daily average range of $4.45. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ITW.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a White Candle showed up on June 25th, ITW actually lost -1.84% on the following trading day.
Illinois Tool managed to close back above the 20-day moving average at 172.42 for the first time since June 17th.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Illinois Tool. Out of 109 times, ITW closed higher 56.88% 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 59.63% with an average market move of 0.75%.