SIG closes within previous day's range
Signet Jewelers Limited (SIG) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
SIG ended Wednesday at 18.30 edging higher $0.02 (0.11%), outperforming the S&P 500 (-0.46%). Trading $0.63 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SIG as at Sep 16, 2020):
Wednesday's trading range has been $1.00 (5.43%), that's slightly below the last trading month's daily average range of $1.24. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SIG.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and two bearish patterns, the Bearish Spinning Top and the Shooting Star. The last time a Bullish Hikkake Pattern showed up on August 18th, SIG actually lost -5.90% on the following trading day.
Prices are trading close to the key technical support level at 17.40 (S1). The stock found buyers again today around 18.06 for the third trading day in a row after having found demand at 18.21 in the previous session and at 18.00 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 17.40 where further sell stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for Signet Jewelers. Out of 125 times, SIG closed higher 51.20% 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 nine trading days, showing a win rate of 56.80% with an average market move of 1.12%.