HRS pushes through key technical resistance level
Harris Corporation (HRS) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
HRS ended the week 4.16% higher at 153.14 after gaining $1.63 (1.08%) today on low volume, strongly outperforming the S&P 500 (-0.92%). Closing above Thursday's high at 153.10, the share confirmed its breakout through the previous session high after trading up to $0.67 above it intraday.
Daily Candlestick Chart (HRS as at Nov 09, 2018):
Friday's trading range has been $3.31 (2.19%), that's below the last trading month's daily average range of $5.56. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for HRS.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a White Candle showed up on October 30th, HRS actually lost -1.42% on the following trading day.
Buyers managed to take out the key technical resistance level at 152.06 (now S1), which is likely to act as support going forward. Harris was sold again around 153.77 after having seen highs at 153.10, 153.12 and 152.98 in the last three trading sessions. Obviously there is something going on at that level.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for Harris. Out of 668 times, HRS closed higher 56.59% 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 61.08% with an average market move of 0.65%.