SEAS closes higher for the 2nd day in a row
SeaWorld Entertainment Inc. (SEAS) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SEAS ended the month -18.0% lower at 14.81 after edging higher $0.02 (0.14%) today on low volume, significantly underperforming the S&P 500 (1.54%). Trading up to $0.35 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 23rd, SEAS actually lost -8.46% 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 (SEAS as at Jun 30, 2020):
Tuesday's trading range has been $0.86 (5.89%), that's below the last trading month's daily average range of $1.55. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SEAS.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Unable to break through the key technical resistance level at 14.82 (R1), the stock closed below it after spiking up to 15.11 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the nearby swing high at 15.97 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 13.37 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for SeaWorld Entertainment. Out of 267 times, SEAS closed lower 53.93% 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 10 trading days, showing a win rate of 54.31% with an average market move of -0.45%.