STX breaks above 100-day moving average for the first time since July 27th
Seagate Technology PLC (STX) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
STX finished Wednesday at 48.67 surging $1.33 (2.81%), significantly outperforming the Nasdaq 100 (-1.67%). Today's close at 48.67 marks the highest recorded closing price since July 27th. Closing above Tuesday's high at 48.19, the market confirmed its breakout through the prior session high after trading up to $1.08 above it intraday.
Daily Candlestick Chart (STX as at Sep 16, 2020):
Wednesday's trading range has been $1.64 (3.43%), that's far above the last trading month's daily average range of $1.13. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for STX.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close above the 100-day moving average at 48.38 for the first time since July 27th. When this moving average was crossed above the last time on July 27th, STX actually lost -2.04% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Trading close to July's high at 50.82 we could see further upside momentum if potential buy stops at the level get triggered.
Among the six 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 192 times, STX closed higher 52.60% 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 59.90% with an average market move of 1.62%.