HOLX finds buyers around 60.54 for the third day in a row
Hologic Inc. (HOLX) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
HOLX finished Wednesday at 60.77 losing $0.12 (-0.2%), but still strongly outperforming the Nasdaq 100 (-1.67%). Trading $0.46 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (HOLX as at Sep 16, 2020):
Wednesday's trading range has been $1.20 (1.96%), that's below the last trading month's daily average range of $2.00. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HOLX. Prices continued to consolidate within a tight trading range between 60.45 and 62.59 where it has been caught now for the last three trading days.
Notwithstanding a strong opening the share closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on September 1st, HOLX gained 4.26% on the following trading day.
Prices are trading close to the key technical resistance level at 60.93 (R1). The stock found buyers again today around 60.54 for the third trading day in a row after having found demand at 60.68 in the previous session and at 60.45 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 60.45 where further sell stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for Hologic. Out of 109 times, HOLX closed higher 58.72% 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 62.39% with an average market move of 0.63%.