SAFM dominated by bulls lifting the market higher throughout the day
Sanderson Farms Inc. (SAFM) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
SAFM finished Tuesday at 114.92 surging $4.46 (4.04%), significantly outperforming the S&P 500 (0.36%). This is the biggest single-day gain in over a month. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 111.71, Sanderson Farms confirmed its breakout through the previous session high after trading up to $3.39 above it intraday.
Daily Candlestick Chart (SAFM as at Aug 04, 2020):
Tuesday's trading range has been $4.63 (4.16%), that's above the last trading month's daily average range of $3.29. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SAFM.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close back above the 20-day moving average at 114.65 for the first time since July 21st. When this moving average was crossed above the last time on July 15th, SAFM gained 1.16% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Sanderson Farms. Out of 316 times, SAFM closed higher 54.43% 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 59.81% with an average market move of 0.83%.