MSI dominated by bears dragging the market lower throughout the day
Motorola Solutions Inc. (MSI) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MSI finished the week -0.4% lower at 167.53 after losing $2.48 (-1.46%) today, strongly underperforming the S&P 500 (1.09%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 168.73, the market confirmed its breakout through the prior session low after trading up to $1.20 below it intraday.
Daily Candlestick Chart (MSI as at Oct 11, 2019):
Friday's trading range has been $4.86 (2.82%), that's far above the last trading month's daily average range of $3.05. 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 lower than usual for MSI.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on August 1st, MSI actually gained 3.23% on the following trading day. Regardless of a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Closing Marubozu and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 166.20 (S1). The share closed back below the 100-day moving average at 168.04 for the first time since October 3rd.
Though Motorola Solutions is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Motorola Solutions. Out of 49 times, MSI closed higher 57.14% 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 59.18% with an average market move of 1.27%.