MOSY closes within prior day's range
MoSys Inc. (MOSY) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
MOSY finished the week 7.69% higher at 1.54 after gaining $0.05 (3.36%) today, strongly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (MOSY as at May 22, 2020):
Friday's trading range has been $0.11 (7.43%), that's slightly above the last trading month's daily average range of $0.11. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for MOSY.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Wednesday, MOSY actually lost -4.49% on the following trading day.
After trading as low as 1.46 during the day, MoSys found support at the 20-day moving average at 1.47. After having been unable to move above 1.57 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 1.57.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 1.64 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 1.40 where further sell stops could get activated. As prices are trading close to May's low at 1.30, downside momentum might speed up should the market mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for MoSys. Out of 72 times, MOSY closed lower 54.17% 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 two trading days, showing a win rate of 59.72% with an average market move of -0.89%.