NATI still stuck within tight trading range
National Instruments Corporation (NATI) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NATI finished the month -0.03% lower at 38.71 after gaining $0.72 (1.9%) today, slightly outperforming the S&P 500 (1.54%). Closing above Monday's high at 38.31, the share confirmed its breakout through the prior session high after trading up to $0.59 above it intraday.
Daily Candlestick Chart (NATI as at Jun 30, 2020):
Tuesday's trading range has been $1.12 (2.94%), that's slightly below the last trading month's daily average range of $1.31. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NATI. Prices continued to consolidate within a tight trading range between 37.20 and 39.13 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on May 18th, NATI actually gained 1.08% on the following trading day.
The market managed to close back above the 50-day moving average at 38.49 for the first time since June 24th.
National Instruments shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the nearby swing high at 39.77 where further buy stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for National Instruments. Out of 467 times, NATI closed higher 53.10% 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 56.32% with an average market move of 0.45%.