FIVN breaks above 50-day moving average for the first time since March 5th
Five9 Inc. (FIVN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
FIVN ended Thursday at 74.24 gaining $4.38 (6.27%) on low volume, slightly outperforming the S&P 500 (6.24%). Today's close at 74.24 marks the highest recorded closing price since February 20th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 73.44, Five9 confirmed its breakout through the previous session high after trading up to $1.77 above it intraday.
Daily Candlestick Chart (FIVN as at Mar 26, 2020):
Thursday's trading range has been $5.86 (8.34%), that's slightly above the last trading month's daily average range of $5.41. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for FIVN. Prices continued to consolidate within a tight trading range between 67.49 and 75.39 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
The share managed to close above the 50-day moving average at 71.32 for the first time since March 5th. After having been unable to move lower than 68.65 in the prior session, the market found buyers again around the same price level today at 69.35. The last time this happened on Monday, FIVN gained 6.30% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 75.39 where further buy stops could get activated. With prices trading close to this year's high at 80.58, upside momentum might accelerate should the stock be able to break out to new highs for the year. As prices are trading close to March's high at 75.40, upside momentum could speed up should FIVN mark new highs for the month.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Five9. Out of 69 times, FIVN closed higher 60.87% 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 56.52% with an average market move of 2.19%.