MXIM crashes -1.62% closing $1.03 lower
Maxim Integrated Products Inc. (MXIM) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
MXIM finished the week 1.94% higher at 62.56 after tanking $1.03 (-1.62%) today, underperforming the Nasdaq 100 (-0.82%). This is the biggest single-day loss in over two weeks. The last time we've seen such an unusually strong single-day loss on January 6th, MXIM actually gained 2.26% on the following trading day. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (MXIM as at Jan 24, 2020):
Friday's trading range has been $2.08 (3.25%), that's far above the last trading month's daily average range of $1.02. 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.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. In spite of a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 62.09 earlier during the day, Maxim Integrated bounced off the key technical support level at 62.39 (S1). The failure to close below the support might increase that levels significance as support going forward. The share found buyers again today around 62.09 for the third trading day in a row after having found demand at 62.21 in the prior session and at 62.01 two days ago.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 61.83.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Maxim Integrated. Out of 438 times, MXIM closed higher 58.22% 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 62.33% with an average market move of 1.17%.