SLAB runs into sellers again around 105.06
Silicon Laboratories Inc. (SLAB) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SLAB ended the week 4.18% higher at 104.20 after gaining $0.17 (0.16%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.83 lower after the open, Silicon Laboratories managed to reverse during the session as bulls took control ending the day above its opening price. 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 (SLAB as at Feb 14, 2020):
Friday's trading range has been $1.72 (1.65%), that's below the last trading month's daily average range of $3.44. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for SLAB. Prices continued to consolidate within a tight trading range between 101.70 and 105.06 where it has been caught now for the last three trading days.
One neutral candlestick pattern matches today's price action, the Doji.
Prices are trading close to the key technical support level at 102.31 (S1). Prices are trading close to the key technical resistance level at 105.93 (R1). After having been unable to move above 104.60 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 105.06. The last time this happened on February 6th, SLAB lost -4.58% on the following trading day.
While the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
With prices trading close to this year's low at 98.19, downside momentum might speed up should the stock break out to new lows for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Silicon Laboratories. Out of 637 times, SLAB closed higher 52.75% 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 54.47% with an average market move of 0.32%.