MSI dominated by bulls lifting the market higher throughout the day
Motorola Solutions Inc. (MSI) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
MSI finished the month 3.55% higher at 140.13 after gaining $1.99 (1.44%) today on low volume, slightly underperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 139.56, the market confirmed its breakout through the previous session high after trading up to $1.36 above it intraday.
Daily Candlestick Chart (MSI as at Jun 30, 2020):
Tuesday's trading range has been $2.52 (1.82%), that's far below the last trading month's daily average range of $4.33. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MSI. Prices continued to consolidate within a tight trading range between 136.27 and 141.03 where it has been caught now for the whole last trading week.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on May 12th, MSI lost -2.18% on the following trading day.
After spiking up to 140.92 during the day, Motorola Solutions found resistance at the 50-day moving average at 140.71.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 140.93 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 136.27 where further sell stops could get triggered. As prices are trading close to June's low at 135.39, downside momentum might speed up should the share mark new lows for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Motorola Solutions. Out of 64 times, MSI closed higher 57.81% 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 64.06% with an average market move of 1.31%.