SNPS closes higher for the 3rd day in a row
Synopsys Inc. (SNPS) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SNPS ended Thursday at 127.97 gaining $6.65 (5.48%) on low volume, slightly underperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 125.63, Synopsys confirmed its breakout through the prior session high after trading up to $2.71 above it intraday.
Daily Candlestick Chart (SNPS as at Mar 26, 2020):
Thursday's trading range has been $6.78 (5.55%), that's slightly below the last trading month's daily average range of $7.98. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SNPS.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close above the 20-day moving average at 127.02 for the first time since February 19th. When this moving average was crossed above the last time on February 3rd, SNPS gained 3.69% on the following trading day. Prices are trading close to the key technical resistance level at 132.52 (R1).
Though the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Synopsys. Out of 182 times, SNPS closed higher 59.89% 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 69.78% with an average market move of 1.05%.