SEE breaks below key technical support level
Sealed Air Corporation (SEE) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
SEE ended the week -5.97% lower at 34.35 after losing $0.53 (-1.52%) today, but still outperforming the S&P 500 (-2.33%) following today's NFP report. Today's close at 34.35 marks the lowest recorded closing price since November 6th. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SEE as at Dec 07, 2018):
Friday's trading range has been $1.06 (3.04%), that's slightly above the last trading month's daily average range of $1.00. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SEE.
Prices broke below the key technical support level at 34.61 (now R1), which is likely to act as resistance going forward. After having been unable to move above 34.94 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 35.10. The last time this happened on November 28th, SEE lost -1.94% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 33.85 where further sell stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Sealed Air. Out of 596 times, SEE closed higher 55.54% 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 54.19% with an average market move of 0.50%.