XLNX finds support at 20-day moving average
Xilinx Inc. (XLNX) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, XLNX finished the week 4.04% higher at 86.59 after losing $0.65 (-0.75%) today on low volume, strongly underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (XLNX as at May 22, 2020):
Friday's trading range has been $1.31 (1.51%), that's far below the last trading month's daily average range of $2.92. 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 XLNX.
After trading as low as 85.64 during the day, the share found support at the 20-day moving average at 85.88. The stock closed back below the 100-day moving average at 86.63. When this moving average was crossed below the last time on Tuesday, XLNX actually gained 3.12% on the following trading day.
Xilinx shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the close-by swing high at 89.80 where further buy stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. Its common bullish interpretation has been confirmed for Xilinx. Out of 58 times, XLNX closed higher 60.34% 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 62.07% with an average market move of 1.29%.