SE climbs to highest close ever
Sea Limited American Depositary Shares each representing one Class A (SE) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SE finished the week 27.5% higher at 79.00 after gaining $1.19 (1.53%) today, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 79.00 marks the highest recorded closing price ever. Trading up to $1.94 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 78.54, Sea confirmed its breakout through the prior session high after trading up to $0.65 above it intraday.
Daily Candlestick Chart (SE as at May 22, 2020):
Friday's trading range has been $3.12 (4.0%), that's slightly 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 way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for SE.
After having been unable to move above 78.54 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 79.19. The last time this happened on May 13th, SE lost -0.63% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 62.52.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for Sea. Out of 97 times, SE closed higher 50.52% 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 58.76% with an average market move of 3.91%.