TEAM closes above its opening price after recovering from early selling pressure
Atlassian Corporation Plc (TEAM) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, TEAM ended the week 4.34% higher at 154.42 after gaining $1.17 (0.76%) today, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 154.42 marks the highest recorded closing price ever. Trading up to $1.56 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (TEAM as at Feb 14, 2020):
Friday's trading range has been $2.81 (1.83%), that's below the last trading month's daily average range of $4.75. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TEAM.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
After trading down to 151.68 earlier during the day, Atlassian bounced off the key technical support level at 151.87 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move above 155.00 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 154.49. The last time this happened on Tuesday, TEAM actually gained 1.70% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 155.00 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Atlassian. Out of 315 times, TEAM closed higher 62.22% 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 66.03% with an average market move of 2.79%.