STX closes above its opening price after recovering from early selling pressure
Seagate Technology PLC (STX) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, STX finished the month -6.59% lower at 45.22 after gaining $0.82 (1.85%) today, slightly outperforming the Nasdaq 100 (1.78%). Trading up to $0.49 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (STX as at Jul 31, 2020):
Friday's trading range has been $1.25 (2.8%), that's slightly above the last trading month's daily average range of $1.13. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for STX.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on Tuesday, STX lost -8.77% on the following trading day.
Prices are trading close to the key technical resistance level at 46.14 (R1).
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 47.66.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Seagate Technology. Out of 325 times, STX closed higher 56.31% 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 55.69% with an average market move of 1.27%.