STM ends the day indecisive
STMicroelectronics N.V. (STM) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
STM ended the week 5.47% higher at 31.23 after losing $0.54 (-1.7%) today, strongly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (STM as at Feb 14, 2020):
Friday's trading range has been $0.47 (1.5%), that's slightly below the last trading month's daily average range of $0.52. 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 STM.
Three candlestick patterns are matching today's price action, the Gravestone Doji and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji. The last time a Doji showed up on January 21st, STM gained 2.23% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for STMicroelectronics N. V.. Out of 73 times, STM closed higher 50.68% 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 56.16% with an average market move of 1.14%.