HRS finds buyers at key support level
Harris Corporation (HRS) Technical Analysis Report for Oct 12, 2018
HRS ended the week -7.57% lower at 154.87 after gaining $0.65 (0.42%) today on high volume, underperforming the S&P 500 (1.42%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (HRS as at Oct 12, 2018):
Friday's trading range has been $5.34 (3.41%), that's far above the last trading month's daily average range of $3.12. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for HRS.
After trading down to 151.88 earlier during the day, the market bounced off the key technical support level at 152.78 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on Tuesday, HRS actually lost -3.39% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 165.07.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Harris Corporation. Out of 487 times, HRS closed higher 60.78% 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 61.19% with an average market move of 0.86%.