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 Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, SE ended Thursday at 45.74 gaining $1.70 (3.86%) on low volume, significantly underperforming the S&P 500 (6.24%). Trading up to $0.74 lower after the open, Sea managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, SE gained 11.42% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (SE as at Mar 26, 2020):
Thursday's trading range has been $1.84 (4.05%), that's far below the last trading month's daily average range of $3.23. 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 strongly higher than usual for SE.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
The market managed to close back above the 50-day moving average at 45.71 for the first time since March 11th. Prices are trading close to the key technical resistance level at 47.51 (R1). After having been unable to move above 46.36 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 46.48.
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 Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Sea. Out of 14 times, SE closed lower 78.57% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after nine trading days, showing a win rate of 64.29% with an average market move of -1.64%.