SHO closes higher for the 6th day in a row
Sunstone Hotel Investors Inc. (SHO) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, SHO ended Thursday at 9.14 gaining $0.32 (3.63%) on low volume, strongly underperforming the S&P 500 (6.24%). Closing above Wednesday's high at 9.00, the market confirmed its breakout through the previous session high after trading up to $0.54 above it intraday.
Daily Candlestick Chart (SHO as at Mar 26, 2020):
Thursday's trading range has been $0.77 (8.58%), that's slightly below the last trading month's daily average range of $0.95. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SHO.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on March 19th, SHO gained 4.03% on the following trading day.
After spiking up to 9.54 during the day, the stock found resistance at the 20-day moving average at 9.16.
Though Sunstone Hotel is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Sunstone Hotel. Out of 55 times, SHO closed higher 58.18% 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 60.00% with an average market move of 1.05%.