HOLX closes lower for the 2nd day in a row
Hologic Inc. (HOLX) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HOLX ended the week 0.77% higher at 52.33 after edging lower $0.23 (-0.44%) today, underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (HOLX as at May 22, 2020):
Friday's trading range has been $0.92 (1.76%), that's far below the last trading month's daily average range of $1.67. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for HOLX.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on May 15th, HOLX actually gained 1.06% on the following trading day.
Prices are trading close to the key technical resistance level at 53.01 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 55.25, upside momentum might speed up should the market be able to break out to new highs for the year.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Hologic. Out of 276 times, HOLX closed higher 53.62% 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 56.88% with an average market move of 0.86%.