STX closes within prior day's range after lackluster session
Seagate Technology PLC (STX) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, STX finished the week 6.63% higher at 40.67 after edging higher $0.07 (0.17%) today, slightly outperforming the Nasdaq 100 (-0.3%). Today's close at 40.67 marks the highest recorded closing price since December 6, 2018. Trading up to $0.78 lower after the open, Seagate Technology managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (STX as at Jan 11, 2019):
Friday's trading range has been $1.04 (2.56%), that's below the last trading month's daily average range of $1.51. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for STX. Prices continued to consolidate within a tight trading range between 39.24 and 40.89 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Hanging Man showed up on November 28, 2018, STX lost -3.29% on the following trading day.
The share ran into sellers again today around 40.87 for the third trading day in a row after having found sellers at 40.89 in the previous session and at 40.83 two days ago.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 40.89 where further buy stops might get activated.
Among the 10 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 Seagate Technology. Out of 179 times, STX closed higher 55.87% 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 54.75% with an average market move of 1.56%.