SIG breaks back above 100-day moving average
Signet Jewelers Limited (SIG) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
SIG finished the week 5.35% higher at 17.12 after gaining $0.90 (5.55%) today, significantly outperforming the S&P 500 (1.09%). Closing above Thursday's high at 16.75, the market confirmed its breakout through the previous session high after trading up to $0.75 above it intraday.
Daily Candlestick Chart (SIG as at Oct 11, 2019):
Friday's trading range has been $0.91 (5.49%), that's slightly below the last trading month's daily average range of $0.96. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SIG.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close back above the 100-day moving average at 16.67. When this moving average was crossed above the last time on Monday, SIG actually lost -11.10% on the following trading day. Unable to break through the key technical resistance level at 17.46 (R1), the share closed below it after spiking up to 17.50 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
Signet Jewelers shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 17.94 where further buy stops could get activated. Trading close to August's high at 18.32 we might see further upside momentum if potential buy stops at the level get triggered.
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 100" stand out. Its common bullish interpretation has been confirmed for Signet Jewelers. Out of 37 times, SIG closed higher 54.05% 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 1.53%.