SEDG closes higher for the 3rd day in a row
SolarEdge Technologies Inc. (SEDG) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SEDG ended Thursday at 90.45 gaining $0.55 (0.61%) on low volume, strongly underperforming the S&P 500 (6.24%). Trading $3.67 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Monday, SEDG actually gained 22.78% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SEDG as at Mar 26, 2020):
Thursday's trading range has been $7.80 (8.54%), that's below the last trading month's daily average range of $10.54. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for SEDG.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 83.60 (S1). Unable to break through the key technical resistance level at 94.06 (R1), SolarEdge Technologies closed below it after spiking up to 95.00 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move above 94.50 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 95.00.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for SolarEdge Technologies. Out of 71 times, SEDG closed higher 53.52% 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 54.93% with an average market move of 2.47%.