SFLY closes within prior day's range after lackluster session
Shutterfly Inc. (SFLY) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
SFLY finished Wednesday at 46.37 losing $0.60 (-1.28%), notably underperforming the S&P 500 (0.3%). The bears were in full control today, moving the market lower throughout the whole session. 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 (SFLY as at Feb 13, 2019):
Wednesday's trading range has been $1.15 (2.44%), that's below the last trading month's daily average range of $1.84. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SFLY.
Even with a strong opening the share closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on January 31st, SFLY lost -3.11% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After having been unable to move lower than 46.17 in the previous session, Shutterfly found buyers again around the same price level today at 46.14.
Although the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the nearby swing high at 47.93 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Its common bearish interpretation has been confirmed for Shutterfly. Out of 256 times, SFLY closed lower 54.30% 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 six trading days, showing a win rate of 48.44% with an average market move of -0.03%.