LFUS pushes through Wednesday's high
Littelfuse Inc. (LFUS) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
LFUS ended Thursday at 138.37 gaining $12.58 (10.0%), strongly outperforming the S&P 500 (6.24%). Closing above Wednesday's high at 133.06, the share confirmed its breakout through the previous session high after trading up to $9.98 above it intraday.
Daily Candlestick Chart (LFUS as at Mar 26, 2020):
Thursday's trading range has been $16.43 (12.82%), that's above the last trading month's daily average range of $12.59. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for LFUS.
One bullish candlestick pattern matches today's price action, the White Candle.
Littelfuse managed to close above the 20-day moving average at 137.11 for the first time since February 20th. Prices are trading close to the key technical resistance level at 147.95 (R1). After having been unable to move lower than 124.67 in the prior session, the market found buyers again around the same price level today at 126.61. The last time this happened on March 19th, LFUS actually lost -3.60% on the following trading day.
Although the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Littelfuse. Out of 157 times, LFUS closed higher 53.50% 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 58.60% with an average market move of 1.05%.