QRVO breaks below key technical support level
Qorvo Inc. (QRVO) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, QRVO finished the week -14.84% lower at 63.93 after tanking $4.18 (-6.14%) today on high volume, strongly underperforming the S&P 500 (-0.58%). Today's close at 63.93 marks the lowest recorded closing price since January 29th. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (QRVO as at May 17, 2019):
Friday's trading range has been $3.22 (4.86%), that's far above the last trading month's daily average range of $2.05. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for QRVO.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 63.37 (S1). Prices broke below the key technical support level at 65.84 (now R1), which is likely to act as resistance going forward. The last time this happened on March 20th, QRVO actually gained 6.90% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 74.22.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) below 30" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Qorvo. Out of 12 times, QRVO closed lower 75.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 66.67% with an average market move of -1.85%.