MXIM closes within prior day's range
Maxim Integrated Products Inc. (MXIM) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
MXIM finished Wednesday at 67.06 losing $0.03 (-0.04%), but still notably outperforming the Nasdaq 100 (-1.67%). Trading $0.82 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (MXIM as at Sep 16, 2020):
Wednesday's trading range has been $1.59 (2.35%), that's slightly above the last trading month's daily average range of $1.51. 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.
After trading down to 66.78 earlier during the day, the share bounced off the key technical support level at 67.01 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on August 13th, MXIM actually lost -1.15% on the following trading day. After having been unable to move lower than 66.67 in the previous session, the market found buyers again around the same price level today at 66.78.
Although 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.
Among the five 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 420 times, MXIM closed higher 59.29% 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 62.14% with an average market move of 1.16%.