SAIL finds buyers around 16.04 for the third day in a row
SailPoint Technologies Holdings Inc. (SAIL) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
SAIL finished Thursday at 16.81 gaining $0.70 (4.35%), significantly underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SAIL as at Mar 26, 2020):
Thursday's trading range has been $1.56 (9.55%), that's slightly below the last trading month's daily average range of $1.99. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for SAIL. Prices continued to consolidate within a tight trading range between 16.00 and 17.69 where it has been caught now for the last three trading days.
Buyers managed to take out the key technical resistance level at 16.37 (now S1), which is likely to act as support going forward. The market found buyers again today around 16.04 for the third trading day in a row after having found demand at 16.04 in the previous session and at 16.00 two days ago. The last time this happened on February 27th, SAIL gained 4.54% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 17.69 where further buy stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for SailPoint Technologies. Out of 28 times, SAIL closed higher 53.57% 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 nine trading days, showing a win rate of 60.71% with an average market move of 0.88%.