STX breaks below Tuesday's low
Seagate Technology PLC (STX) Technical Analysis Report for Aug 12, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, STX finished Wednesday at 45.64 losing $0.14 (-0.31%), notably underperforming the Nasdaq 100 (2.59%). Closing below Tuesday's low at 45.68, the share confirmed its breakout through the previous session low after trading up to $0.42 below it intraday.
Daily Candlestick Chart (STX as at Aug 12, 2020):
Wednesday's trading range has been $0.65 (1.42%), that's far below the last trading month's daily average range of $1.16. Weekly volatility is also lower, being slightly below 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 Spinning Top. The last time a Bearish Spinning Top showed up on July 22nd, STX actually gained 1.07% on the following trading day.
Prices are trading close to the key technical resistance level at 46.14 (R1).
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might accelerate should prices move above the close-by swing high at 46.80 where further buy stops could get activated. Further selling might move prices lower should the market test July's nearby low at 43.53.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Seagate Technology. Out of 291 times, STX closed higher 54.98% 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 54.98% with an average market move of 0.75%.