XLNX closes below its opening price unable to hold early session gains
Xilinx Inc. (XLNX) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
XLNX ended Wednesday at 102.33 losing $0.50 (-0.49%) on low volume, but still notably outperforming the Nasdaq 100 (-1.67%). Trading $1.49 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Tuesday's low at 102.62, Xilinx confirmed its breakout through the previous session low after trading up to $0.42 below it intraday.
Daily Candlestick Chart (XLNX as at Sep 16, 2020):
Wednesday's trading range has been $2.46 (2.38%), that's slightly above the last trading month's daily average range of $2.42. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for XLNX.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Despite a strong opening the share closed below the prior day's open and close, forming a bearish Engulfing Candle.
Prices are trading close to the key technical support level at 101.82 (S1). The market closed back below the 20-day moving average at 102.54. When this moving average was crossed below the last time on September 3rd, XLNX lost -1.42% on the following trading day. After having been unable to move lower than 102.62 in the previous session, XLNX found buyers again around the same price level today at 102.20.
Although the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Xilinx. Out of 155 times, XLNX closed higher 54.84% 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 0.67%.