MXIM closes above its opening price after recovering from early selling pressure
Maxim Integrated Products Inc. (MXIM) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, MXIM ended Thursday at 50.18 gaining $1.57 (3.23%), strongly underperforming the Nasdaq 100 (5.72%). Trading up to $0.79 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MXIM as at Mar 26, 2020):
Thursday's trading range has been $2.01 (4.08%), that's below the last trading month's daily average range of $3.47. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MXIM. Prices continued to consolidate within a tight trading range between 46.20 and 50.73 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
The market managed to close above the 20-day moving average at 50.09 for the first time since February 19th. After having been unable to move above 50.73 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 50.43. The last time this happened on Monday, MXIM actually gained 4.82% on the following trading day.
Though 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.
Buying could speed up should prices move above the nearby swing high at 50.73 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Maxim Integrated. Out of 761 times, MXIM closed higher 49.80% 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 55.32% with an average market move of 0.40%.