QRVO closes within prior day's range after lackluster session
Qorvo Inc. (QRVO) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
QRVO finished Wednesday at 64.90 losing $0.28 (-0.43%), underperforming the S&P 500 (0.3%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (QRVO as at Feb 13, 2019):
Wednesday's trading range has been $0.77 (1.18%), that's below the last trading month's daily average range of $1.80. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for QRVO. Prices continued to consolidate within a tight trading range between 64.32 and 65.74 where it has been caught now for the last three trading days.
Three candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle.
Prices are trading close to the key technical resistance level at 66.05 (R1). The stock ran into sellers again today around 65.50 for the third trading day in a row after having found sellers at 65.74 in the previous session and at 65.45 two days ago. The last time this happened on February 5th, QRVO actually gained 3.92% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 65.74 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 "Bearish Short Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Qorvo. Out of 24 times, QRVO closed higher 66.67% 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 66.67% with an average market move of 1.20%.