SEE breaks below Thursday's low
Sealed Air Corporation (SEE) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SEE ended the week 3.62% higher at 29.80 after losing $0.20 (-0.67%) today on low volume, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 29.93, the market confirmed its breakout through the previous session low after trading up to $0.43 below it intraday.
Daily Candlestick Chart (SEE as at May 22, 2020):
Friday's trading range has been $0.62 (2.07%), that's far below the last trading month's daily average range of $1.20. 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 SEE.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on April 27th, SEE gained 5.18% on the following trading day.
After trading down to 29.50 earlier during the day, the stock bounced off the key technical support level at 29.54 (S1). The failure to close below the support might increase that levels significance as support going forward.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 30.86 where further buy stops might get triggered. Further buying could move prices higher should the market test April's close-by high at 31.82.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Sealed Air. Out of 381 times, SEE closed higher 56.43% 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 seven trading days, showing a win rate of 54.33% with an average market move of 0.21%.