MXIM breaks below 20-day moving average for the first time since October 31st
Maxim Integrated Products Inc. (MXIM) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, MXIM ended the week -5.4% lower at 52.90 after tanking $1.58 (-2.9%) today, but still slightly outperforming the Nasdaq 100 (-3.3%) following today's NFP report. Closing below Thursday's low at 53.50, the market confirmed its breakout through the prior session low after trading up to $0.93 below it intraday.
Daily Candlestick Chart (MXIM as at Dec 07, 2018):
Friday's trading range has been $1.75 (3.26%), that's above the last trading month's daily average range of $1.43. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MXIM.
After trading as low as 52.57 during the day, the share found support at the 50-day moving average at 52.75. The stock closed below the 20-day moving average at 53.58 for the first time since October 31st. When this moving average was crossed below the last time on September 25th, MXIM lost -2.67% on the following trading day.
Although Maxim Integrated is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Maxim Integrated. Out of 135 times, MXIM closed higher 63.70% 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 57.78% with an average market move of 1.23%.