NTAP pushes through key technical resistance level
NetApp Inc. (NTAP) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
NTAP ended the week -6.56% lower at 76.92 after surging $2.96 (4.0%) today, strongly outperforming the S&P 500 (1.42%). This is the biggest single-day gain in over. Closing above Thursday's high at 76.81, the stock confirmed its breakout through the previous session high after trading up to $0.45 above it intraday.
Daily Candlestick Chart (NTAP as at Oct 12, 2018):
Friday's trading range has been $1.84 (2.42%), that's slightly below the last trading month's daily average range of $2.01. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for NTAP.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 76.61 (now S1), which is likely to act as support going forward.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 83.27. The last time this happened on April 3rd, NTAP gained 2.44% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Close to S1 Support" stand out. Its common bullish interpretation has been confirmed for NetApp. Out of 1,064 times, NTAP closed higher 54.61% 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 56.11% with an average market move of 1.29%.