SIVB closes higher for the 3rd day in a row
SVB Financial Group (SIVB) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SIVB finished Thursday at 171.53 gaining $6.53 (3.96%), notably underperforming the S&P 500 (6.24%). Trading up to $5.54 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (SIVB as at Mar 26, 2020):
Thursday's trading range has been $12.63 (7.58%), that's below the last trading month's daily average range of $16.90. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SIVB.
The share managed to close above the 20-day moving average at 166.28 for the first time since February 21st. When this moving average was crossed above the last time on February 4th, SIVB gained 3.13% on the following trading day. Prices are trading close to the key technical resistance level at 182.00 (R1). After having been unable to move above 171.53 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 173.64.
While SVB Financial is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the nearby swing high at 182.00 where further buy stops could 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 High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for SVB Financial. Out of 783 times, SIVB closed higher 52.36% 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 59.26% with an average market move of 0.99%.