HOLX closes within prior day's range
Hologic Inc. (HOLX) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, HOLX ended the month 22.42% higher at 69.78 after gaining $0.07 (0.1%) today, notably underperforming the Nasdaq 100 (1.78%). Today's close at 69.78 marks the highest recorded closing price ever. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (HOLX as at Jul 31, 2020):
Friday's trading range has been $1.67 (2.43%), that's slightly above the last trading month's daily average range of $1.51. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for HOLX.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a White Candle showed up on Wednesday, HOLX gained 8.92% on the following trading day.
After having been unable to move above 70.15 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 70.34.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 61.20.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Hologic. Out of 74 times, HOLX closed higher 55.41% 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 62.16% with an average market move of 1.04%.