OKTA breaks below Monday's low
Okta Inc. (OKTA) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
OKTA ended Tuesday at 94.22 losing $1.47 (-1.54%), significantly underperforming the S&P 500 (0.05%). Closing below Monday's low at 94.49, the market confirmed its breakout through the previous session low after trading up to $0.79 below it intraday.
Daily Candlestick Chart (OKTA as at Apr 16, 2019):
Tuesday's trading range has been $3.36 (3.5%), that's slightly below the last trading month's daily average range of $3.58. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for OKTA.
Regardless of a strong opening Okta closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After having been unable to move above 97.24 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 97.06. The last time this happened on April 8th, OKTA actually gained 5.72% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 97.24 where further buy stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Okta. Out of 107 times, OKTA closed higher 62.62% 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 69.16% with an average market move of 4.08%.