ADI closes above its opening price after recovering from early selling pressure
Analog Devices Inc. (ADI) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ADI ended the week 9.1% higher at 111.06 after edging higher $0.05 (0.05%) today, slightly underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Trading up to $1.24 lower after the open, Analog Devices managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 14th, ADI actually lost -3.50% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ADI as at May 22, 2020):
Friday's trading range has been $2.26 (2.04%), that's far below the last trading month's daily average range of $3.62. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ADI.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading as low as 109.52 during the day, the share found support at the 200-day moving average at 109.66. After having been unable to move lower than 110.10 in the previous session, the market found buyers again around the same price level today at 109.52.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 115.57 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 200" stand out. Its common bullish interpretation has been confirmed for Analog Devices. Out of 17 times, ADI closed higher 52.94% 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 58.82% with an average market move of 1.53%.