KLAC finds buyers again around 91.65
KLA-Tencor Corporation (KLAC) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
KLAC ended the week -6.19% lower at 93.19 after gaining $1.42 (1.55%) today, significantly underperforming the Nasdaq 100 (2.77%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (KLAC as at Oct 12, 2018):
Friday's trading range has been $3.27 (3.48%), that's above the last trading month's daily average range of $2.59. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for KLAC.
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.
Prices are trading close to the key technical support level at 91.29 (S1). After having been unable to move lower than 91.29 in the prior session, KLA-Tencor Corp. found buyers again around the same price level today at 91.65. The last time this happened on Tuesday, KLAC actually lost -5.35% 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 while might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 100.50.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 91.29 where further sell stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Close to S1 Support" stand out. Its common bullish interpretation has been confirmed for KLA-Tencor Corp.. Out of 1,124 times, KLAC closed higher 55.96% 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 58.99% with an average market move of 1.10%.