STX runs into sellers again around 48.10
Seagate Technology PLC (STX) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, STX finished Thursday at 47.97 gaining $3.45 (7.75%), strongly outperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (STX as at Mar 26, 2020):
Thursday's trading range has been $3.55 (7.95%), that's slightly above the last trading month's daily average range of $3.08. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for STX.
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, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 17th, STX actually lost -4.78% on the following trading day.
The share managed to close above the 20-day moving average at 46.04 for the first time since January 28th. After having been unable to move above 48.16 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 48.10.
Although Seagate Technology is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the nearby swing high at 48.16 where further buy stops might get activated. As prices are trading close to March's high at 51.61, upside momentum could speed up should the stock mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Seagate Technology. Out of 194 times, STX closed higher 52.06% 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 59.79% with an average market move of 1.63%.