CTXS pushes through key technical resistance level
Citrix Systems Inc. (CTXS) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, CTXS finished Thursday at 137.81 surging $11.15 (8.8%), significantly outperforming the Nasdaq 100 (5.72%). Today's close at 137.81 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 131.11, Citrix Systems confirmed its breakout through the previous session high after trading up to $8.38 above it intraday.
Daily Candlestick Chart (CTXS as at Mar 26, 2020):
Thursday's trading range has been $13.52 (10.73%), that's above the last trading month's daily average range of $10.14. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for CTXS.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a White Candle showed up on March 17th, CTXS gained 2.39% on the following trading day.
Buyers managed to take out the key technical resistance level at 130.55 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 141.01 (R1).
Crossing above the upper Bollinger Band for the first time since March 18th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 117.44 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 141.01 where further buy stops might get triggered.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Citrix Systems. Out of 796 times, CTXS closed higher 56.03% 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 57.29% with an average market move of 0.66%.