MXIM closes lower for the 2nd day in a row
Maxim Integrated Products Inc. (MXIM) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MXIM ended the month 12.34% higher at 68.09 after losing $0.92 (-1.33%) today, strongly underperforming the Nasdaq 100 (1.78%). 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 Jul 31, 2020):
Friday's trading range has been $2.14 (3.1%), that's slightly above the last trading month's daily average range of $1.76. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MXIM.
After trading as low as 67.01 during the day, the stock found support at the 20-day moving average at 67.61. The last time this happened on June 22nd, MXIM gained 1.57% on the following trading day. Unable to break through the key technical resistance level at 69.07 (R1), the share closed below it after spiking up to 69.15 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move above 69.25 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 69.15.
While Maxim Integrated is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could accelerate should prices move below the close-by swing low at 66.59 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Maxim Integrated. Out of 293 times, MXIM closed higher 52.90% 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 58.70% with an average market move of 0.57%.