CTXS breaks back above 100-day moving average
Citrix Systems Inc. (CTXS) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CTXS ended the month -3.48% lower at 142.76 after gaining $1.07 (0.76%) today, strongly underperforming the Nasdaq 100 (1.78%). Trading up to $4.36 lower after the open, Citrix Systems managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (CTXS as at Jul 31, 2020):
Friday's trading range has been $5.97 (4.19%), that's slightly above the last trading month's daily average range of $5.31. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for CTXS. Prices continued to consolidate within a tight trading range between 136.93 and 144.39 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one neutral pattern, the Doji.
The market managed to close back above the 100-day moving average at 142.54. When this moving average was crossed above the last time on March 17th, CTXS gained 2.39% on the following trading day.
Although the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Trading close to May's low at 135.05 we might see further downside momentum if potential sell stops at the level get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Citrix Systems. Out of 134 times, CTXS closed higher 53.73% 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 61.19% with an average market move of 1.53%.