NGVT pushes through Thursday's high
Ingevity Corporation (NGVT) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NGVT finished the week unchanged at 66.84 after gaining $0.54 (0.81%) today, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing above Thursday's high at 66.60, Ingevity confirmed its breakout through the previous session high after trading up to $1.09 above it intraday.
Daily Candlestick Chart (NGVT as at Feb 14, 2020):
Friday's trading range has been $1.56 (2.36%), that's below the last trading month's daily average range of $2.53. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NGVT. Prices continued to consolidate within a tight trading range between 65.39 and 67.69 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical support level at 65.39 (S1).
While the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might speed up should prices move below the nearby swing low at 65.40 where further sell stops could get triggered. With prices trading close to this year's low at 62.53, downside momentum might accelerate should the market break out to new lows for the year. As prices are trading close to February's high at 69.53, upside momentum could speed up should the stock mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Ingevity. Out of 58 times, NGVT closed higher 67.24% 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 56.90% with an average market move of 0.58%.