PODD pushes through key technical resistance level
Insulet Corporation (PODD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, PODD ended Thursday at 177.77 gaining $11.34 (6.81%), outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 172.48, the market confirmed its breakout through the prior session high after trading up to $7.51 above it intraday.
Daily Candlestick Chart (PODD as at Mar 26, 2020):
Thursday's trading range has been $12.89 (7.71%), that's slightly below the last trading month's daily average range of $13.65. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PODD.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 173.98 (now S1), which is likely to act as support going forward. The last time this happened on Tuesday, PODD gained 5.66% on the following trading day. After spiking up to 179.99 during the day, the stock found resistance at the 100-day moving average at 179.63.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
As prices are trading close to March's high at 184.22, upside momentum could accelerate should Insulet mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for Insulet. Out of 624 times, PODD closed higher 52.40% 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 58.17% with an average market move of 0.97%.