SGMS breaks back above 100-day moving average
Scientific Games Corp (SGMS) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
SGMS ended Tuesday at 22.57 surging $1.68 (8.04%) on high volume, strongly outperforming the S&P 500 (0.05%). This is the biggest single-day gain in over a month. Today's close at 22.57 marks the highest recorded closing price since March 15th.
Daily Candlestick Chart (SGMS as at Apr 16, 2019):
Tuesday's trading range has been $1.10 (4.98%), that's slightly above the last trading month's daily average range of $0.99. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SGMS.
The share managed to close back above the 100-day moving average at 21.75 for the first time since April 5th. When this moving average was crossed above the last time on April 5th, SGMS actually lost -8.74% on the following trading day.
Crossing above the upper Bollinger Band for the first time since February 27th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 20.96 or signal the beginning of a strong momentum breakout leading to even higher prices.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
As prices are trading close to April's high at 23.75, upside momentum might accelerate should the stock mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Up" stand out. Its common bullish interpretation has been confirmed for Scientific Games. Out of 50 times, SGMS closed higher 56.00% 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 62.00% with an average market move of 2.09%.