SE closes higher for the 4th day in a row
Sea Limited American Depositary Shares each representing one Class A (SE) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, SE finished the week 4.96% higher at 48.49 after gaining $0.54 (1.13%) today, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 48.49 marks the highest recorded closing price ever. Trading $0.83 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (SE as at Feb 14, 2020):
Friday's trading range has been $1.17 (2.41%), that's slightly below the last trading month's daily average range of $1.31. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SE.
Four candlestick patterns are matching today's price action, the Bearish Doji Star, the Gravestone Doji and the Northern Doji which are known as bearish patterns and one neutral pattern, the Doji. The last time a Gravestone Doji showed up on November 25, 2019, SE actually gained 1.07% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Sea. Out of 17 times, SE closed higher 70.59% 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 82.35% with an average market move of 9.03%.