OKTA still stuck within tight trading range
Okta Inc. (OKTA) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
OKTA ended the week 3.19% higher at 137.03 after gaining $1.72 (1.27%) today, strongly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (OKTA as at Feb 14, 2020):
Friday's trading range has been $3.60 (2.65%), that's below the last trading month's daily average range of $4.48. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for OKTA. Prices continued to consolidate within a tight trading range between 132.32 and 139.11 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on January 22nd, OKTA actually gained 2.26% on the following trading day.
Unable to break through the key technical resistance level at 138.97 (R1), Okta closed below it after spiking up to 139.11 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. The share was sold again around 139.11 after having seen highs at 138.71, 138.97 and 138.85 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2019's high at 141.85 is within reach and we might see further upside momentum should the stock manage to break out beyond.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Okta. Out of 37 times, OKTA closed higher 59.46% 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 62.16% with an average market move of 3.36%.