SHAK breaks back below 20-day moving average
Shake Shack Inc. Class A (SHAK) Technical Analysis Report for Jan 13, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, SHAK finished Monday at 60.30 losing $0.82 (-1.34%) on high volume, strongly underperforming the S&P 500 (0.7%).
Daily Candlestick Chart (SHAK as at Jan 13, 2020):
Monday's trading range has been $1.58 (2.59%), that's slightly above the last trading month's daily average range of $1.56. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SHAK.
Prices are trading close to the key technical support level at 59.05 (S1). The market closed back below the 20-day moving average at 60.43 for the first time since January 6th. When this moving average was crossed below the last time on January 6th, SHAK actually gained 2.92% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Further buying might move prices higher should the market test December's nearby high at 62.92. Further selling could move prices lower should the market test December's close-by low at 57.47.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Shake Shack. Out of 135 times, SHAK closed higher 54.81% 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 51.11% with an average market move of 0.61%.