QRVO stuck within tight trading range
Qorvo Inc. (QRVO) Technical Analysis Report for Jul 10, 2020 | by Techniquant Editorial Team
QRVO ended the week 1.55% higher at 112.01 after losing $1.10 (-0.97%) today on low volume, strongly underperforming the S&P 500 (1.05%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (QRVO as at Jul 10, 2020):
Friday's trading range has been $2.46 (2.17%), that's below the last trading month's daily average range of $3.10. 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. Prices continued to consolidate within a tight trading range between 110.47 and 114.21 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. In spite of a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical resistance level at 113.73 (R1). After having been unable to move above 113.59 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 113.58. The last time this happened on July 1st, QRVO actually gained 1.88% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 115.49 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 110.47 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Qorvo. Out of 386 times, QRVO closed higher 55.18% 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 61.92% with an average market move of 1.74%.