MSI closes higher for the 4th day in a row
Motorola Solutions Inc. (MSI) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, MSI ended Wednesday at 157.09 edging higher $0.29 (0.18%) on low volume, outperforming the S&P 500 (-0.46%). Trading $1.29 higher after the open, Motorola Solutions was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (MSI as at Sep 16, 2020):
Wednesday's trading range has been $1.96 (1.24%), that's below the last trading month's daily average range of $2.89. 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.
Unable to break through the key technical resistance level at 157.97 (R1), the stock closed below it after spiking up to 158.99 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on September 2nd, MSI lost -2.27% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Motorola Solutions. Out of 88 times, MSI closed higher 54.55% 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 55.68% with an average market move of 0.34%.