A closes within previous day's range
Agilent Technologies Inc. (A) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
A ended the week -5.78% lower at 66.24 after gaining $1.35 (2.08%) today on high volume, outperforming the S&P 500 (1.42%). Trading up to $0.80 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Tuesday, A actually lost -3.95% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (A as at Oct 12, 2018):
Friday's trading range has been $1.73 (2.62%), that's above the last trading month's daily average range of $1.17. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for A.
Two candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns.
The market managed to break above the 100-day moving average at 65.82 today. Prices are trading close to the key technical resistance level at 67.26 (R1). After having been unable to move above 66.97 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 67.03.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 69.71.
Though Agilent is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Trading close to August's low at 64.22 we might see further downside momentum if potential sell stops at the level get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Agilent. Out of 65 times, A closed higher 52.31% 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 58.46% with an average market move of 0.35%.