STX rises to highest close since November 7, 2018
Seagate Technology PLC (STX) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, STX ended Wednesday at 45.74 gaining $0.35 (0.77%), outperforming the Nasdaq 100 (0.02%). Today's close at 45.74 marks the highest recorded closing price since November 7, 2018. Closing above Tuesday's high at 45.70, the share confirmed its breakout through the previous session high after trading up to $0.38 above it intraday.
Daily Candlestick Chart (STX as at Feb 13, 2019):
Wednesday's trading range has been $0.60 (1.31%), that's far below the last trading month's daily average range of $1.53. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for STX.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on January 30th, STX gained 1.23% on the following trading day.
Prices are trading close to the key technical resistance level at 46.39 (R1).
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 46.44 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Seagate Technology. Out of 300 times, STX closed higher 54.33% 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 57.67% with an average market move of 1.85%.