- Bearish market sentiment insufficient to push STMicroelectronics into testing pivotal support level at $29.51
- Lower Bollinger Band® at around $29.11
STMicroelectronics's bearish run has lasted 8 days so far (-$4.56). Yesterday's session continued the recent downtrend: grinding lower but with no clear-cut direction, STMicroelectronics closed the session at $29.91 after forming a distinct $29.57 – $30.43 range.
STMicroelectronics is now trading 23.69% below its 3-month high of $52.13.
Support/Resistance levels obtained from chart analysis indicate that STMicroelectronics N.V. could begin to recover as it approaches significant support, now 40 cents away from $29.51. Dipping below could be an indication that further losses are ahead. Trend-focused traders would be interested to note that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Asset volatility analysis shows that Bollinger Bands® shows an indication of recovery: the lower band is at $29.11, a low enough level to, generally, suggest that STMicroelectronics is trading below its fair value.
With market volatility ebbing, the current technical outlook indicates STMicroelectronics will remain range-bound for the immediate future.
Fundamental indicators – United States ISM Non-Manufacturing PMI (Oct) came out at 54.4, while a consensus of analysts was expecting 55.5.
STMicroelectronics was not the only decliner in the technology sector; Accenture plc Class A (Ireland) closed at $256.88 (down 5.71%). Qualcomm lost 7.66% yesterday and closed at $103.88. Apple went down 4.24%, closed at $145.03.
Upcoming fundamentals: today at 12:30 UTC data for United States Non Farm Payrolls will be released, with an expected decline to 200,000 from the preceding figure of 263,000.