NTAP finds buyers again around 45.04
NetApp Inc. (NTAP) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
NTAP finished Wednesday at 45.11 losing $0.27 (-0.59%), slightly underperforming the S&P 500 (-0.46%). Trading $0.91 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Tuesday's low at 45.14, the share confirmed its breakout through the previous session low after trading up to $0.10 below it intraday.
Daily Candlestick Chart (NTAP as at Sep 16, 2020):
Wednesday's trading range has been $1.49 (3.27%), that's slightly below the last trading month's daily average range of $1.60. 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.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar.
Prices are trading close to the key technical support level at 44.37 (S1). Unable to break through the key technical resistance level at 46.09 (R1), NetApp closed below it after spiking up to 46.53 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 45.14 in the prior session, the stock found buyers again around the same price level today at 45.04. The last time this happened on September 9th, NTAP actually lost -4.72% on the following trading day.
Though NTAP is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for NetApp. Out of 389 times, NTAP closed lower 53.98% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 53.98% with an average market move of -0.30%.