STX closes within prior day's range after lackluster session
Seagate Technology PLC (STX) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, STX finished Thursday at 44.58 losing $0.05 (-0.11%), slightly underperforming the Nasdaq 100 (-0.07%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (STX as at Aug 15, 2019):
Thursday's trading range has been $0.75 (1.68%), that's below the last trading month's daily average range of $1.26. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for STX.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading down to 44.13 earlier during the day, the stock bounced off the key technical support level at 44.36 (S1). The failure to close below the support could increase that levels importance as support going forward. After having been unable to move lower than 44.32 in the prior session, the share found buyers again around the same price level today at 44.13. The last time this happened on Tuesday, STX actually lost -2.62% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the four 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 Seagate Technology. Out of 404 times, STX closed higher 56.93% 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 53.71% with an average market move of 1.49%.