IVZ fails to close above 50-day moving average
Invesco Ltd (IVZ) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
IVZ ended Monday at 8.22 gaining $0.25 (3.14%), strongly outperforming the S&P 500 (0.38%). Closing above Friday's high at 8.15, the market confirmed its breakout through the prior session high after trading up to $0.20 above it intraday.
Daily Candlestick Chart (IVZ as at Jun 01, 2020):
Monday's trading range has been $0.43 (5.37%), that's slightly below the last trading month's daily average range of $0.44. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IVZ.
After spiking up to 8.35 during the day, the stock found resistance at the 50-day moving average at 8.30. The last time this happened on February 3rd, IVZ actually gained 3.30% on the following trading day.
Although Invesco Ltd is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the close-by swing high at 8.68 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 7.74 where further sell stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Invesco Ltd. Out of 675 times, IVZ closed higher 52.30% of the time on the next trading day after the market condition occurred.