IVZ falls to lowest close since November 25, 2011
Invesco Ltd (IVZ) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, IVZ finished the week -8.99% lower at 18.52 after losing $0.35 (-1.85%) today, but still slightly outperforming the S&P 500 (-2.33%) following today's NFP report. Today's close at 18.52 marks the lowest recorded closing price since November 25, 2011. Trading $0.37 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (IVZ as at Dec 07, 2018):
Friday's trading range has been $0.88 (4.66%), that's above the last trading month's daily average range of $0.65. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IVZ.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar.
After having been unable to move lower than 18.49 in the previous session, Invesco Ltd found buyers again around the same price level today at 18.39. The last time this happened on November 27th, IVZ gained 1.03% on the following trading day.
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 20.16.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Invesco Ltd. Out of 100 times, IVZ closed higher 59.00% 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 55.00% with an average market move of 0.46%.