SIG dominated by bears dragging the market lower throughout the day
Signet Jewelers Limited (SIG) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
SIG finished the week -8.97% lower at 17.97 after tanking $1.15 (-6.01%) today, notably underperforming the S&P 500 (-0.16%). Today's close at 17.97 marks the lowest recorded closing price since May 28, 2009. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 18.41, the market confirmed its breakout through the previous session low after trading up to $0.63 below it intraday.
Daily Candlestick Chart (SIG as at Jun 14, 2019):
Friday's trading range has been $1.23 (6.47%), that's above the last trading month's daily average range of $1.04. 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 SIG.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Wednesday, SIG actually gained 2.30% on the following trading day.
Prices are trading close to the key technical support level at 17.69 (S1).
Crossing below the lower Bollinger Band for the first time since May 16th, prices have shown unusually strong downward momentum in the short-term. This might either indicate a potential selling climax after which prices could head back up towards the mean of the Bollinger Bands at 19.93 or signal the beginning of a strong momentum breakout leading to even lower prices.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 17.69 where further sell stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the lower Bollinger Band" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Signet Jewelers. Out of 73 times, SIG closed higher 58.90% 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 56.16% with an average market move of 0.14%.