MXIM closes lower for the 2nd day in a row
Maxim Integrated Products Inc. (MXIM) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MXIM finished the week -5.92% lower at 53.59 after losing $0.81 (-1.49%) today, slightly underperforming the Nasdaq 100 (-1.01%). Trading $1.04 higher after the open, Maxim Integrated was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (MXIM as at May 17, 2019):
Friday's trading range has been $1.37 (2.54%), that's slightly above the last trading month's daily average range of $1.34. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for MXIM. Prices continued to consolidate within a tight trading range between 53.29 and 55.11 where it has been caught now for the last three trading days.
Prices are trading close to the key technical support level at 53.50 (S1). The market found buyers again today around 53.52 for the third trading day in a row after having found demand at 53.29 in the prior session and at 53.47 two days ago. The last time this happened on May 3rd, MXIM actually lost -2.38% on the following trading day.
While the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the close-by swing low at 53.29 where further sell stops could get triggered. Trading close to March's low at 51.37 we might see further downside momentum if potential sell stops at the level get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous two Lows" stand out. Its common bullish interpretation has been confirmed for Maxim Integrated. Out of 95 times, MXIM closed higher 54.74% 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 70.53% with an average market move of 1.71%.