SIX pushes through Thursday's high
Six Flags Entertainment Corporation (SIX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SIX finished the week 2.81% higher at 39.21 after edging higher $0.04 (0.1%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing above Thursday's high at 39.20, the share confirmed its breakout through the prior session high after trading up to $0.33 above it intraday.
Daily Candlestick Chart (SIX as at Feb 14, 2020):
Friday's trading range has been $0.63 (1.61%), that's below the last trading month's daily average range of $0.86. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for SIX.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on November 13, 2019, SIX actually lost -2.22% on the following trading day.
Though Six Flags is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the nearby swing high at 39.79 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 38.63 where further sell stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Six Flags. Out of 691 times, SIX closed higher 53.26% 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 58.03% with an average market move of 0.72%.