XLNX breaks above 20-day moving average for the first time since January 24th
Xilinx Inc. (XLNX) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
XLNX finished Thursday at 80.28 gaining $5.26 (7.01%), significantly outperforming the Nasdaq 100 (5.72%). Today's close at 80.28 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 above Wednesday's high at 78.28, Xilinx confirmed its breakout through the prior session high after trading up to $2.12 above it intraday.
Daily Candlestick Chart (XLNX as at Mar 26, 2020):
Thursday's trading range has been $6.36 (8.38%), that's slightly above the last trading month's daily average range of $5.46. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for XLNX.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close above the 20-day moving average at 76.92 for the first time since January 24th. The market found buyers again today around 74.04 for the third trading day in a row after having found demand at 74.07 in the previous session and at 73.78 two days ago. The last time this happened on Monday, XLNX gained 6.82% on the following trading day.
Although the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
As prices are trading close to March's high at 86.10, upside momentum could speed up should XLNX mark new highs for the month.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Xilinx. Out of 537 times, XLNX closed higher 54.56% 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 54.19% with an average market move of 0.72%.