MXIM closes lower for the 2nd day in a row
Maxim Integrated Products Inc. (MXIM) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MXIM finished the week 1.65% higher at 63.56 after losing $0.74 (-1.15%) today on low volume, strongly underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 63.65, the market confirmed its breakout through the previous session low after trading up to $0.43 below it intraday.
Daily Candlestick Chart (MXIM as at Feb 14, 2020):
Friday's trading range has been $1.44 (2.23%), that's slightly above the last trading month's daily average range of $1.41. 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.
In spite of a strong opening Maxim Integrated closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on January 24th, MXIM lost -3.63% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical resistance level at 64.35 (R1). After having been unable to move above 64.69 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 64.66.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2019's high at 65.73 is within reach and we might see further upside momentum should the stock manage to break out beyond.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Maxim Integrated. Out of 266 times, MXIM closed higher 57.89% 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 57.52% with an average market move of 1.02%.