A closes within prior day's range
Agilent Technologies Inc. (A) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, A ended the week -2.9% lower at 70.25 after losing $1.66 (-2.31%) today, but still slightly outperforming the S&P 500 (-2.33%) following today's NFP report. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (A as at Dec 07, 2018):
Friday's trading range has been $2.44 (3.4%), that's far above the last trading month's daily average range of $1.71. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for A.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 69.65 earlier during the day, the market bounced off the key technical support level at 69.70 (S1). The failure to close below the support could increase that levels importance as support going forward. Prices broke below the key technical support level at 71.46 (now R1), which is likely to act as resistance going forward. The last time this happened on November 19th, A actually gained 7.84% on the following trading day. After having been unable to move lower than 69.90 in the prior session, Agilent Technologies found buyers again around the same price level today at 69.65.
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Agilent Technologies. Out of 520 times, A closed higher 56.73% 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 60.77% with an average market move of 1.24%.