HOLX pushes through key technical resistance level
Hologic Inc. (HOLX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
HOLX ended the week -0.28% lower at 53.02 after gaining $0.58 (1.11%) today on low volume, outperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 52.73, the share confirmed its breakout through the previous session high after trading up to $0.31 above it intraday.
Daily Candlestick Chart (HOLX as at Feb 14, 2020):
Friday's trading range has been $0.78 (1.49%), that's slightly below the last trading month's daily average range of $0.85. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HOLX.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 52.56 (now S1), which is likely to act as support going forward.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 53.75. The last time this happened on November 12, 2019, HOLX gained 1.58% on the following trading day.
While Hologic is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the close-by swing high at 53.70 where further buy stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Hologic. Out of 64 times, HOLX closed higher 56.25% 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 57.81% with an average market move of 1.05%.