SIG runs into sellers again around 26.91


Signet Jewelers Limited (SIG) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team

Highlights

SIG breaks back below 20-day moving average
SIG closes lower for the 2nd day in a row
SIG runs into sellers again around 26.91
SIG breaks below Thursday's low

Overview

Moving lower for the 2nd day in a row, SIG finished the week 3.49% higher at 26.07 after losing $0.70 (-2.61%) today, notably underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 26.15, the share confirmed its breakout through the previous session low after trading up to $0.22 below it intraday.

Daily Candlestick Chart (SIG as at Feb 14, 2020):

Daily technical analysis candlestick chart for Signet Jewelers Limited (SIG) as at Feb 14, 2020

Friday's trading range has been $0.98 (3.67%), that's below the last trading month's daily average range of $1.28. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for SIG.

In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. The last time this happened on January 7th, SIG actually gained 4.11% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.

The market closed back below the 20-day moving average at 26.16. After having been unable to move above 26.83 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 26.91.

The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.

Buying might speed up should prices move above the nearby swing high at 27.22 where further buy stops could get triggered.

Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Signet Jewelers. Out of 151 times, SIG closed higher 57.62% 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 53.64% with an average market move of 0.74%.


Market Conditions for SIG as at Feb 14, 2020

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