QRVO dominated by bears dragging the market lower throughout the day
Qorvo Inc. (QRVO) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
QRVO finished Wednesday at 128.83 losing $1.16 (-0.89%), slightly underperforming the S&P 500 (-0.46%). The bears were in full control today, moving the market lower throughout the whole session. 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 Sep 16, 2020):
Wednesday's trading range has been $3.07 (2.34%), that's slightly below the last trading month's daily average range of $4.06. 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 higher than usual for QRVO.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Monday, QRVO actually gained 5.82% on the following trading day.
Prices are trading close to the key technical resistance level at 130.44 (R1).
While the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 136.06, upside momentum might accelerate should the market be able to break out to new highs for the year. As prices are trading close to September's high at 135.89, upside momentum could speed up should Qorvo mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Qorvo. Out of 399 times, QRVO closed higher 56.39% 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 61.65% with an average market move of 1.85%.