SIG breaks back below 50-day moving average
Signet Jewelers Limited (SIG) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
SIG ended the month -2.65% lower at 10.27 after losing $0.38 (-3.57%) today on low volume, strongly underperforming the S&P 500 (1.54%). Trading $0.39 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 26th, SIG actually gained 8.23% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (SIG as at Jun 30, 2020):
Tuesday's trading range has been $0.70 (6.65%), that's below the last trading month's daily average range of $1.43. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SIG.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
The share closed back below the 50-day moving average at 10.58. After having been unable to move above 10.94 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 10.92.
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 could accelerate should prices move above the close-by swing high at 10.94 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 9.71 where further sell stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Signet Jewelers. Out of 757 times, SIG closed higher 53.90% 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 51.92% with an average market move of 0.45%.