STX closes higher for the 3rd day in a row
Seagate Technology PLC (STX) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, STX finished the week 3.52% higher at 63.23 after gaining $0.47 (0.75%) today on high volume, significantly outperforming the Nasdaq 100 (-0.82%). Today's close at 63.23 marks the highest recorded closing price since January 23, 2015. Trading up to $0.51 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (STX as at Jan 24, 2020):
Friday's trading range has been $1.50 (2.37%), that's far above the last trading month's daily average range of $0.93. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for STX.
Five candlestick patterns are matching today's price action, the Gravestone Doji and the Northern Doji which are both known as bearish patterns and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man. The last time a Rickshaw-Man showed up on May 30, 2019, STX lost -4.71% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 60.39.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Gravestone Doji" stand out. Its common bearish interpretation has been confirmed for Seagate Technology. Out of 41 times, STX closed lower 58.54% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 60.98% with an average market move of -0.18%.