CTXS finds buyers around 135.13 for the third day in a row
Citrix Systems Inc. (CTXS) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CTXS ended the week -6.6% lower at 137.04 after gaining $0.31 (0.23%) today, slightly underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. 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 (CTXS as at May 22, 2020):
Friday's trading range has been $2.75 (2.0%), that's far below the last trading month's daily average range of $4.37. 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 slightly higher than usual for CTXS. Prices continued to consolidate within a tight trading range between 135.05 and 138.96 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji. The last time a Doji showed up on May 6th, CTXS gained 2.00% on the following trading day.
Prices are trading close to the key technical resistance level at 138.41 (R1). The market found buyers again today around 135.13 for the third trading day in a row after having found demand at 135.05 in the prior session and at 135.18 two days ago.
Though the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the close-by swing low at 135.05 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous two Lows" stand out. Its common bullish interpretation has been confirmed for Citrix Systems. Out of 128 times, CTXS closed higher 63.28% 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 56.25% with an average market move of 0.52%.