SE rises to highest close ever
Sea Limited American Depositary Shares each representing one Class A (SE) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SE finished Thursday at 117.62 gaining $3.16 (2.76%) on low volume, significantly outperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. Today's close at 117.62 marks the highest recorded closing price ever. Trading $1.38 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, SE actually gained 6.73% on the following trading day. 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 Jul 02, 2020):
Thursday's trading range has been $3.90 (3.31%), that's below the last trading month's daily average range of $5.66. 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 slightly lower than usual for SE.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Sea. Out of 83 times, SE closed higher 56.63% 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 59.04% with an average market move of 3.96%.