MXIM breaks back above 50-day moving average
Maxim Integrated Products Inc. (MXIM) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
MXIM finished the week 4.22% higher at 54.14 after surging $1.26 (2.38%) today on high volume, notably outperforming the Nasdaq 100 (0.88%). The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (MXIM as at Mar 15, 2019):
Friday's trading range has been $1.05 (1.97%), that's above the last trading month's daily average range of $0.88. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MXIM.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
The stock managed to close back above the 50-day moving average at 53.80 for the first time since March 6th. When this moving average was crossed above the last time on January 24th, MXIM gained 3.17% on the following trading day.
Though the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to March's high at 55.66, upside momentum could accelerate should Maxim Integrated mark new highs for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Maxim Integrated. Out of 299 times, MXIM closed higher 51.17% 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 55.85% with an average market move of 0.42%.