NTAP breaks below Thursday's low
NetApp Inc. (NTAP) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NTAP finished the week 5.43% higher at 44.68 after losing $0.79 (-1.74%) today, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 44.86, NetApp confirmed its breakout through the previous session low after trading up to $0.78 below it intraday.
Daily Candlestick Chart (NTAP as at May 22, 2020):
Friday's trading range has been $1.18 (2.61%), that's below the last trading month's daily average range of $1.55. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NTAP.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the close-by swing high at 46.42 where further buy stops might get activated. Trading close to March's high at 48.19 we could see further upside momentum if potential buy stops at the level get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for NetApp. Out of 306 times, NTAP closed higher 56.54% 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 53.27% with an average market move of 0.76%.