QRVO closes above its opening price after recovering from early selling pressure
Qorvo Inc. (QRVO) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
QRVO finished the week 7.21% higher at 101.54 after gaining $2.57 (2.6%) today on low volume, notably outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $1.66 lower after the open, the market managed to reverse during the session as bulls took control ending the day above 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 (QRVO as at May 22, 2020):
Friday's trading range has been $3.49 (3.5%), that's slightly below the last trading month's daily average range of $3.94. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for QRVO.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Wednesday, QRVO actually lost -4.22% on the following trading day.
After trading as low as 98.09 during the day, the share found support at the 20-day moving average at 98.18.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the close-by swing high at 104.47 where further buy stops could get triggered. As prices are trading close to May's high at 108.78, upside momentum might speed up should Qorvo mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Qorvo. Out of 489 times, QRVO closed higher 52.97% 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 58.28% with an average market move of 0.99%.