STMP pushes through Thursday's high
Stamps.com Inc. (STMP) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
STMP finished the week 9.14% higher at 88.73 after gaining $2.94 (3.43%) today, significantly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 88.73 marks the highest recorded closing price since January 17th. Trading up to $1.15 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Tuesday, STMP gained 4.14% on the following trading day. Closing above Thursday's high at 87.38, Stamps. com confirmed its breakout through the prior session high after trading up to $1.56 above it intraday.
Daily Candlestick Chart (STMP as at Feb 14, 2020):
Friday's trading range has been $2.80 (3.21%), that's slightly below the last trading month's daily average range of $3.08. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for STMP.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
After trading down to 86.14 earlier during the day, the stock bounced off the key technical support level at 87.18 (S1). The failure to close below the support might increase that levels significance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 92.71, upside momentum could accelerate should the share be able to break out to new highs for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Stamps. com. Out of 424 times, STMP closed higher 55.42% 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 57.31% with an average market move of 1.68%.