SCG still stuck within tight trading range
SCANA Corporation (SCG) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
SCG finished the week 0.42% higher at 40.18 after gaining $0.18 (0.45%) today, strongly outperforming the S&P 500 (-0.92%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SCG as at Nov 09, 2018):
Friday's trading range has been $1.30 (3.27%), that's slightly below the last trading month's daily average range of $1.78. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SCG. Prices continued to consolidate within a tight trading range between 39.62 and 40.99 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on Wednesday, SCG actually lost -1.60% on the following trading day.
Prices are trading close to the key technical support level at 39.35 (S1). Unable to break through the key technical resistance level at 40.47 (R1), the stock closed below it after spiking up to 40.99 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. SCANA was bought again around 39.69 after having seen lows at 39.75, 39.67 and 39.68 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 39.67 where further sell stops could get triggered. Further buying might move prices higher should the market test October's nearby high at 41.84.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous three Lows" stand out. Its common bullish interpretation has been confirmed for SCANA. Out of 22 times, SCG closed higher 63.64% 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 59.09% with an average market move of 0.24%.