MSI closes above its opening price after recovering from early selling pressure
Motorola Solutions Inc. (MSI) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
MSI finished the month -0.24% lower at 139.80 after edging higher $0.61 (0.44%) today on low volume, slightly underperforming the S&P 500 (0.77%). Trading up to $2.60 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (MSI as at Jul 31, 2020):
Friday's trading range has been $2.81 (2.01%), that's slightly below the last trading month's daily average range of $3.22. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MSI.
Three candlestick patterns are matching today's price action, the Dragonfly Doji which is known as bullish pattern, one bearish pattern, the Northern Doji and one neutral pattern, the Doji. The last time a Dragonfly Doji showed up on July 23, 2019, MSI actually lost -1.88% on the following trading day.
Prices are trading close to the key technical resistance level at 140.80 (R1).
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could speed up should prices move below the nearby swing low at 135.90 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for Motorola Solutions. Out of 642 times, MSI closed higher 53.89% 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 58.10% with an average market move of 0.57%.