SCI surges, gaining $1.32 (2.71%) within a single day on high volume
Service Corporation International (SCI) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, SCI ended the week 6.25% higher at 49.96 after surging $1.32 (2.71%) today on high volume, strongly outperforming the S&P 500 (0.18%). This is the biggest single-day gain in over nine months. Today's close at 49.96 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (SCI as at Feb 14, 2020):
Friday's trading range has been $1.70 (3.49%), that's far above the last trading month's daily average range of $0.82. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SCI.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 48.40 earlier during the day, Service bounced off the key technical support level at 48.66 (S1). The failure to close below the support might increase that levels significance as support going forward.
Crossing above the upper Bollinger Band for the first time since January 16th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 48.04 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on January 9th, SCI gained 0.92% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Service. Out of 36 times, SCI closed higher 58.33% 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 five trading days, showing a win rate of 61.11% with an average market move of -0.03%.