ADI breaks above 100-day moving average for the first time since December 3, 2018
Analog Devices Inc. (ADI) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, ADI finished the week 8.91% higher at 90.06 after gaining $1.45 (1.64%) today, strongly outperforming the Nasdaq 100 (-0.3%). Today's close at 90.06 marks the highest recorded closing price since December 4, 2018. Closing above Thursday's high at 88.66, the market confirmed its breakout through the previous session high after trading up to $2.45 above it intraday.
Daily Candlestick Chart (ADI as at Jan 11, 2019):
Friday's trading range has been $3.04 (3.45%), that's slightly above the last trading month's daily average range of $2.71. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ADI.
One bullish candlestick pattern matches today's price action, the White Candle.
Analog Devices managed to close above the 100-day moving average at 88.96 for the first time since December 3, 2018. Unable to break through the key technical resistance level at 90.55 (R1), the share closed below it after spiking up to 91.11 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on Monday, ADI actually gained 2.44% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Its common bullish interpretation has been confirmed for Analog Devices. Out of 85 times, ADI closed higher 55.29% 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 70.59% with an average market move of 1.61%.