ADI breaks back below 100-day moving average
Analog Devices Inc. (ADI) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
ADI ended Wednesday at 115.56 losing $0.50 (-0.43%), but still significantly outperforming the Nasdaq 100 (-1.67%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ADI as at Sep 16, 2020):
Wednesday's trading range has been $2.29 (1.96%), that's slightly below the last trading month's daily average range of $2.54. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ADI.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 113.81 (S1). The stock closed back below the 100-day moving average at 115.97. After having been unable to move lower than 115.15 in the prior session, the share found buyers again around the same price level today at 115.44. The last time this happened on September 1st, ADI gained 2.59% on the following trading day.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Analog Devices. Out of 91 times, ADI closed higher 58.24% 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 65.93% with an average market move of 2.13%.