IVZ breaks back below 50-day moving average
Invesco Ltd (IVZ) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, IVZ ended the week -2.41% lower at 17.78 after losing $0.23 (-1.28%) today on low volume, significantly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (IVZ as at Feb 14, 2020):
Friday's trading range has been $0.32 (1.78%), that's below the last trading month's daily average range of $0.42. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IVZ.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on October 17, 2019, IVZ actually gained 1.66% on the following trading day.
The share closed back below the 50-day moving average at 17.87 for the first time since February 3rd.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's low at 17.18, downside momentum might accelerate should the stock break out to new lows for the year. As prices are trading close to February's low at 17.28, downside momentum could speed up should the market mark new lows for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Invesco Ltd. Out of 71 times, IVZ closed higher 60.56% 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 59.15% with an average market move of 0.37%.