KLAC closes within previous day's range after lackluster session
KLA-Tencor Corporation (KLAC) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team
KLAC ended the week 24.75% higher at 142.24 after losing $7.52 (-5.02%) today, strongly underperforming the Nasdaq 100 (-3.91%). Trading $2.13 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on March 19th, KLAC lost -10.47% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (KLAC as at Mar 27, 2020):
Friday's trading range has been $5.84 (4.03%), that's below the last trading month's daily average range of $11.24. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for KLAC. Prices continued to consolidate within a tight trading range between 134.39 and 150.47 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. After moving higher in the prior session, the stock closed lower but above the previous day's open today, forming a bearish Harami Candle.
Prices broke below the key technical support level at 144.26 (now R1), which is likely to act as resistance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 150.47 where further buy stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for KLA-Tencor. Out of 398 times, KLAC closed higher 58.54% 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 58.54% with an average market move of 1.17%.