MSI closes above its opening price after recovering from early selling pressure
Motorola Solutions Inc. (MSI) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
MSI ended the week 2.76% higher at 184.41 after gaining $0.29 (0.16%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $1.01 lower after the open, the market 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 failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MSI as at Feb 14, 2020):
Friday's trading range has been $1.86 (1.01%), that's below the last trading month's daily average range of $2.98. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for MSI. Prices continued to consolidate within a tight trading range between 181.45 and 185.34 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on Monday, MSI actually gained 0.21% on the following trading day.
Prices are trading close to the key technical resistance level at 185.34 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 185.34 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 181.45 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Motorola Solutions. Out of 77 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 61.04% with an average market move of 1.02%.