XLNX finds buyers at key support level
Xilinx Inc. (XLNX) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
XLNX ended the month 9.11% higher at 107.35 after tanking $4.52 (-4.04%) today on high volume, significantly underperforming the Nasdaq 100 (1.78%) following Thursday's earnings report. This is the biggest single-day loss in over a month. Trading up to $2.28 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. 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 Jul 31, 2020):
XLNX reported earnings of $0.65 per share after Thursday's market close. With analysts having expected an EPS of $0.63, Xilinx Inc. topped market expectations by 3.2%. The company's last earnings report was released on April 22, 2020, when Xilinx Inc. reported earnings of $0.78 per share surpassing market expectations by 2.6%.
Friday's trading range has been $3.85 (3.61%), that's above the last trading month's daily average range of $2.92. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for XLNX.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 104.47 earlier during the day, the stock bounced off the key technical support level at 105.40 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on July 24th, XLNX gained 4.04% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 102.40.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Xilinx. Out of 423 times, XLNX closed higher 56.26% 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 57.21% with an average market move of 0.90%.