IVZ drops to lowest close since December 28, 2011
Invesco Ltd (IVZ) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, IVZ finished the week -14.2% lower at 19.94 after losing $0.13 (-0.65%) today on high volume, notably underperforming the S&P 500 (1.42%). Today's close at 19.94 marks the lowest recorded closing price since December 28, 2011. Closing below Thursday's low at 20.02, the share confirmed its breakout through the prior session low after trading up to $0.36 below it intraday.
Daily Candlestick Chart (IVZ as at Oct 12, 2018):
Friday's trading range has been $0.90 (4.4%), that's far above the last trading month's daily average range of $0.63. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for IVZ.
One bearish candlestick pattern matches today's price action, the Black Candle.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 22.84.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Invesco Ltd.. Out of 25 times, IVZ closed higher 68.00% 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 64.00% with an average market move of 1.66%.