SEIC finds support at 20-day moving average
SEI Investments Company (SEIC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SEIC finished the week 1.14% higher at 51.35 after losing $0.21 (-0.41%) today on low volume, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. 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 (SEIC as at May 22, 2020):
Friday's trading range has been $0.96 (1.86%), that's below the last trading month's daily average range of $1.42. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SEIC. Prices continued to consolidate within a tight trading range between 50.68 and 52.12 where it has been caught now for the last three trading days.
After trading as low as 50.68 during the day, SEI Investments found support at the 20-day moving average at 50.89. After having been unable to move above 51.78 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 51.64. The last time this happened on May 15th, SEIC actually gained 3.86% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the close-by swing high at 53.14 where further buy stops could get triggered. Further buying might move prices higher should the market test April's nearby high at 53.28.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. Its common bullish interpretation has been confirmed for SEI Investments. Out of 79 times, SEIC closed higher 51.90% 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 65.82% with an average market move of 1.86%.