MXIM breaks back above 20-day moving average
Maxim Integrated Products Inc. (MXIM) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MXIM finished the month 5.08% higher at 60.61 after gaining $1.01 (1.69%) today, slightly underperforming the Nasdaq 100 (1.96%). Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (MXIM as at Jun 30, 2020):
Tuesday's trading range has been $1.39 (2.32%), that's slightly below the last trading month's daily average range of $1.53. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for MXIM.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close back above the 20-day moving average at 59.98. When this moving average was crossed above the last time on June 15th, MXIM gained 2.75% on the following trading day. Prices are trading close to the key technical resistance level at 60.97 (R1).
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 62.19 where further buy stops might get triggered. As prices are trading close to June's high at 62.72, upside momentum could speed up should Maxim Integrated mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Maxim Integrated. Out of 323 times, MXIM closed higher 51.08% 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 59.75% with an average market move of 0.89%.