SCG closes below its opening price unable to hold early session gains
SCANA Corporation (SCG) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
SCG ended the week 0.43% higher at 46.86 after losing $0.49 (-1.03%) today, but still notably outperforming the S&P 500 (-2.33%) following today's NFP report. Trading $0.79 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on November 5th, SCG actually gained 0.58% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SCG as at Dec 07, 2018):
Friday's trading range has been $1.35 (2.86%), that's slightly below the last trading month's daily average range of $1.38. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SCG.
Prices broke below the key technical support level at 46.99 (now R1), which is likely to act as resistance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 45.74 where further sell stops might get activated. With prices trading close to this year's high at 49.40, upside momentum could speed up should the share be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for SCANA. Out of 347 times, SCG closed higher 54.18% 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 55.33% with an average market move of 0.44%.