OKTA breaks back below 20-day moving average
Okta Inc. (OKTA) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
OKTA ended the week 0.99% higher at 79.21 after tanking $3.67 (-4.43%) today, significantly underperforming the S&P 500 (0.5%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 80.10, the share confirmed its breakout through the previous session low after trading up to $1.23 below it intraday.
Daily Candlestick Chart (OKTA as at Mar 15, 2019):
Friday's trading range has been $3.91 (4.74%), that's slightly above the last trading month's daily average range of $3.54. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for OKTA.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 76.85 (S1). The stock closed back below the 20-day moving average at 82.40. When this moving average was crossed below the last time on March 4th, OKTA actually gained 0.69% on the following trading day. Okta ran into sellers again today around 82.78 for the third trading day in a row after having found sellers at 83.33 in the prior session and at 82.98 two days ago.
Though the market 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 nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Down Move" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Okta. Out of 31 times, OKTA closed higher 61.29% 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 70.97% with an average market move of 5.29%.