KLAC still stuck within tight trading range
KLA-Tencor Corporation (KLAC) Technical Analysis Report for Sep 21, 2020 | by Techniquant Editorial Team
KLAC ended Monday at 181.10 gaining $2.14 (1.2%), outperforming the Nasdaq 100 (0.4%). Trading up to $2.75 lower after the open, KLA-Tencor managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (KLAC as at Sep 21, 2020):
Monday's trading range has been $5.61 (3.15%), that's slightly below the last trading month's daily average range of $6.29. 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 KLAC. Prices continued to consolidate within a tight trading range between 174.70 and 185.19 where it has been caught now for the whole last trading week.
After trading as low as 175.61 during the day, the market found support at the 200-day moving average at 175.94. The last time this happened on May 14th, KLAC actually lost -5.27% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might speed up should prices move above the nearby swing high at 184.55 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 174.70 where further sell stops could get activated. As prices are trading close to September's low at 171.31, downside momentum might speed up should the share mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 200" stand out. Its common bullish interpretation has been confirmed for KLA-Tencor. Out of 13 times, KLAC closed higher 61.54% 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 69.23% with an average market move of 3.08%.