S breaks above 20-day moving average for the first time since March 6th
Sprint Corporation (S) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
S finished Thursday at 8.61 gaining $0.62 (7.76%), notably outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (S as at Mar 26, 2020):
Thursday's trading range has been $0.63 (7.87%), that's slightly above the last trading month's daily average range of $0.61. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for S.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 19th, S actually lost -6.37% on the following trading day.
Sprint managed to close above the 20-day moving average at 8.42 for the first time since March 6th. Prices are trading close to the key technical resistance level at 8.78 (R1). After having been unable to move above 8.63 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 8.63.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Sprint. Out of 155 times, S closed lower 58.06% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after two trading days, showing a win rate of 53.55% with an average market move of -0.05%.