KLAC breaks back above 20-day moving average
KLA-Tencor Corporation (KLAC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, KLAC finished the month 2.75% higher at 199.83 after gaining $1.93 (0.98%) today, underperforming the Nasdaq 100 (1.78%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (KLAC as at Jul 31, 2020):
Friday's trading range has been $4.91 (2.45%), that's below the last trading month's daily average range of $6.11. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for KLAC.
Five candlestick patterns are matching today's price action, the Dragonfly Doji which is known as bullish pattern, three bearish patterns, the Bearish Doji Star, the Hanging Man and the Northern Doji and one neutral pattern, the Doji. The last time a Bearish Doji Star showed up on May 3, 2019, KLAC lost -3.00% on the following trading day.
The market managed to close back above the 20-day moving average at 199.67 for the first time since July 23rd.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Dragonfly Doji" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for KLA-Tencor. Out of 8 times, KLAC closed lower 75.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 75.00% with an average market move of -1.68%.