SE closes below its opening price unable to hold early session gains
Sea Limited American Depositary Shares each representing one Class A (SE) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
SE ended the month 34.39% higher at 107.24 after losing $1.53 (-1.41%) today on low volume, strongly underperforming the S&P 500 (1.54%). Trading $1.32 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (SE as at Jun 30, 2020):
Tuesday's trading range has been $3.35 (3.07%), that's below the last trading month's daily average range of $5.37. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SE.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical resistance level at 110.64 (R1). After having been unable to move above 110.64 in the prior session, Sea ran into sellers again around the same price level today, failing to move higher than 110.40. The last time this happened on June 19th, SE actually gained 6.03% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 110.64 where further buy stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Sea. Out of 113 times, SE closed higher 59.29% 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 63.72% with an average market move of 4.17%.