SIG closes higher for the 3rd day in a row
Signet Jewelers Limited (SIG) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SIG finished Thursday at 9.52 gaining $2.19 (29.88%) on high volume, strongly outperforming the S&P 500 (6.24%) following today's earnings report.
Daily Candlestick Chart (SIG as at Mar 26, 2020):
SIG reported earnings of $3.67 per share before today's market open. With analysts having expected an EPS of $3.45, Signet Jewelers Limited topped market expectations by 6.4%. The company's last earnings report was released on Dec. 5, 2019, when Signet Jewelers Limited reported earnings of $-0.76 per share surpassing market expectations by 29.0%.
Thursday's trading range has been $2.50 (31.02%), that's above the last trading month's daily average range of $2.13. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SIG.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 19th, SIG actually lost -11.44% on the following trading day.
Buyers managed to take out the key technical resistance level at 9.14 (now S1), which is likely to act as support going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Up" stand out. Its common bullish interpretation has been confirmed for Signet Jewelers. Out of 82 times, SIG closed higher 58.54% 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 59.76% with an average market move of 1.42%.