KEYS dominated by bulls lifting the market higher throughout the day
Keysight Technologies Inc. (KEYS) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
KEYS ended the week 3.87% higher at 98.16 after gaining $1.55 (1.6%) today, significantly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (KEYS as at Feb 14, 2020):
Friday's trading range has been $1.43 (1.47%), that's below the last trading month's daily average range of $2.48. 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 KEYS. Prices continued to consolidate within a tight trading range between 96.38 and 98.70 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 98.70 (R1). The stock ran into sellers again today around 98.29 for the third trading day in a row after having found sellers at 98.34 in the prior session and at 98.70 two days ago. The last time this happened on December 11, 2019, KEYS actually gained 3.93% on the following trading day.
Although the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the close-by swing high at 98.70 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 96.38 where further sell stops might get triggered.
Among the eight 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 Keysight Technologies. Out of 353 times, KEYS closed higher 55.81% 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 57.51% with an average market move of 0.89%.