TEAM climbs to highest close since March 5th
Atlassian Corporation Plc (TEAM) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, TEAM ended Thursday at 148.20 surging $9.04 (6.5%) on low volume, slightly outperforming the S&P 500 (6.24%). Today's close at 148.20 marks the highest recorded closing price since March 5th. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (TEAM as at Mar 26, 2020):
Thursday's trading range has been $9.95 (7.18%), that's slightly below the last trading month's daily average range of $10.55. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher 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. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Atlassian managed to close above the 50-day moving average at 141.53 for the first time since March 6th. Prices are trading close to the key technical resistance level at 150.71 (R1). After having been unable to move above 149.70 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 148.51. The last time this happened on Monday, TEAM actually gained 7.89% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 149.70 where further buy stops might get activated. With prices trading close to this year's high at 156.12, upside momentum could accelerate should the market be able to break out to new highs for the year. As prices are trading close to March's high at 155.30, upside momentum might speed up should the stock mark new highs for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for Atlassian. Out of 29 times, TEAM closed higher 62.07% 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 72.41% with an average market move of 3.78%.