SIG closes higher for the 2nd day in a row
Signet Jewelers Limited (SIG) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SIG finished the week 13.4% higher at 10.24 after edging higher $0.08 (0.79%) today, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. 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 May 22, 2020):
Friday's trading range has been $0.68 (6.67%), 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. Prices continued to consolidate within a tight trading range between 9.46 and 10.68 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on Monday, SIG actually lost -4.09% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 9.46 where further sell stops might get activated. As prices are trading close to May's high at 11.22, upside momentum could accelerate should the market mark new highs for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Signet Jewelers. Out of 244 times, SIG closed higher 53.69% of the time on the next trading day after the market condition occurred.