NTAP pushes through Wednesday's high
NetApp Inc. (NTAP) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
NTAP finished Thursday at 42.45 surging $4.76 (12.63%), strongly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 39.41, the market confirmed its breakout through the previous session high after trading up to $3.16 above it intraday.
Daily Candlestick Chart (NTAP as at Mar 26, 2020):
Thursday's trading range has been $5.08 (13.43%), that's far above the last trading month's daily average range of $3.13. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for NTAP.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 18th, NTAP actually lost -8.82% on the following trading day.
The stock managed to close above the 20-day moving average at 41.40 for the first time since February 12th. Prices are trading close to the key technical resistance level at 44.89 (R1). After having been unable to move lower than 36.99 in the prior session, NetApp found buyers again around the same price level today at 37.49.
While the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the close-by swing high at 44.24 where further buy stops might get activated.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for NetApp. Out of 126 times, NTAP closed higher 52.38% 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 53.97% with an average market move of 0.89%.