NTAP dominated by bears dragging the market lower throughout the day
NetApp Inc. (NTAP) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
NTAP finished Monday at 42.67 tanking $1.87 (-4.2%), notably underperforming the S&P 500 (0.38%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Friday's low at 43.53, NetApp confirmed its breakout through the previous session low after trading up to $0.86 below it intraday.
Daily Candlestick Chart (NTAP as at Jun 01, 2020):
Monday's trading range has been $1.46 (3.33%), that's slightly below the last trading month's daily average range of $1.49. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NTAP.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on May 26th, NTAP actually gained 2.57% on the following trading day.
Prices are trading close to the key technical support level at 42.53 (S1). The share closed below the 20-day moving average at 43.67 for the first time since May 14th.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further selling could move prices lower should the market test May's nearby low at 39.81.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for NetApp. Out of 536 times, NTAP closed higher 55.04% 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 four trading days, showing a win rate of 50.56% with an average market move of 0.20%.