MXIM finds buyers again around 55.31
Maxim Integrated Products Inc. (MXIM) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
MXIM ended the week 7.8% higher at 56.12 after gaining $0.47 (0.84%) today on low volume, slightly outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.46 lower after the open, Maxim Integrated managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (MXIM as at May 22, 2020):
Friday's trading range has been $0.91 (1.63%), that's far below the last trading month's daily average range of $1.61. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MXIM.
The stock managed to close back above the 100-day moving average at 55.79. After having been unable to move lower than 55.44 in the previous session, the market found buyers again around the same price level today at 55.31. The last time this happened on May 15th, MXIM gained 5.92% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 57.51 where further buy stops could get triggered. Trading close to March's high at 58.83 we might see further upside momentum if potential buy stops at the level get activated.
Among the seven 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 429 times, MXIM closed higher 59.21% 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 62.24% with an average market move of 1.16%.