KLAC closes below its opening price unable to hold early session gains
KLA-Tencor Corporation (KLAC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, KLAC finished Wednesday at 180.81 edging higher $0.05 (0.03%), notably outperforming the Nasdaq 100 (-1.67%). Trading $2.79 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on July 28th, KLAC actually gained 1.38% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (KLAC as at Sep 16, 2020):
Wednesday's trading range has been $4.53 (2.48%), that's slightly below the last trading month's daily average range of $5.90. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for KLAC.
Prices are trading close to the key technical support level at 179.84 (S1).
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for KLA-Tencor. Out of 393 times, KLAC closed higher 59.80% 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 59.29% with an average market move of 1.26%.