SIG still stuck within tight trading range
Signet Jewelers (SIG) Technical Analysis Report for Aug 10, 2018 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SIG finished the week 1.6% higher at 59.85 after gaining $0.14 (0.23%) today. Today's closing price of 59.85 marks the highest close since July 30th. Trading up to $1.08 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (SIG as at Aug 10, 2018):
Friday's trading range was $1.65 (2.77%), that's slightly above last trading month's daily average range of $1.61. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being slightly above average. Prices continued to consolidate within a tight trading range between 58.49 and 60.61 which it has been in now for the last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar.
After trading as low as 58.55 during the day, the stock bounced off the key support level at 58.97. The failure to close below the support could increase that levels importance as support going forward. After having been unable to move above 60.05 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 60.20. After trading as low as 58.55 during the day, Signet Jewelers found support at the 20-day moving average at 59.59.
Although SIG is currently in a short-term down trend, this might just be a correction, as the medium and long term trends are both positive.
Buying could speed up should prices move above the nearby swing high at 60.61 where further buy stops might get activated. With prices trading close to this year's high at 62.93, upside momentum could accelerate should the share be able to break out to new highs for the year.