OLED closes within prior day's range
Universal Display Corporation (OLED) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
OLED finished Wednesday at 171.53 losing $1.10 (-0.64%), slightly underperforming the S&P 500 (-0.46%). Trading $2.10 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (OLED as at Sep 16, 2020):
Wednesday's trading range has been $4.47 (2.57%), that's slightly below the last trading month's daily average range of $4.84. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for OLED.
Prices are trading close to the key technical support level at 170.98 (S1). The stock closed back below the 50-day moving average at 172.14. When this moving average was crossed below the last time on September 8th, OLED actually gained 2.62% on the following trading day.
Although 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 five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Universal Display. Out of 52 times, OLED closed higher 61.54% 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 61.54% with an average market move of 2.49%.