SIG closes above its opening price after recovering from early selling pressure
Signet Jewelers Limited (SIG) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
SIG ended Wednesday at 25.37 gaining $0.24 (0.96%), outperforming the S&P 500 (0.3%). Today's close at 25.37 marks the highest recorded closing price since January 18th. Trading up to $0.42 lower after the open, Signet Jewelers 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 missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SIG as at Feb 13, 2019):
Wednesday's trading range has been $0.65 (2.58%), that's below the last trading month's daily average range of $0.98. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SIG.
The market managed to close above the 20-day moving average at 25.09 for the first time since January 16th. After having been unable to move above 25.54 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 25.45. The last time this happened on February 4th, SIG actually gained 1.53% on the following trading day.
Although the share 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 close-by swing high at 25.54 where further buy stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Signet Jewelers. Out of 148 times, SIG closed higher 55.41% 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 62.16% with an average market move of 1.09%.