WIX pushes through key technical resistance level
Wix.com Ltd. (WIX) Technical Analysis Report for Aug 16, 2019 | by Techniquant Editorial Team
WIX ended the week -3.12% lower at 143.80 after gaining $1.60 (1.13%) today, slightly underperforming the S&P 500 (1.44%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (WIX as at Aug 16, 2019):
Friday's trading range has been $2.20 (1.54%), that's far below the last trading month's daily average range of $5.73. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for WIX.
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.
Buyers managed to take out the key technical resistance level at 143.26 (now S1), which is likely to act as support going forward. The last time this happened on Tuesday, WIX actually lost -4.46% on the following trading day. After having been unable to move above 145.45 in the prior session, Wix. com Ltd. ran into sellers again around the same price level today, failing to move higher than 144.85.
Although the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the close-by swing low at 140.70 where further sell stops could get triggered. Further selling might move prices lower should the market test July's nearby low at 139.16.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Wix. com Ltd.. Out of 433 times, WIX closed higher 52.89% 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 59.35% with an average market move of 1.80%.