SIX closes higher for the 3rd day in a row
Six Flags Entertainment Corporation (SIX) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SIX ended the week 23.18% higher at 23.54 after gaining $0.45 (1.95%) today on low volume, notably outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 23.54 marks the highest recorded closing price since March 4th. Trading up to $0.76 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. 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 (SIX as at May 22, 2020):
Friday's trading range has been $1.05 (4.5%), that's far below the last trading month's daily average range of $1.83. 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 SIX. Prices continued to consolidate within a tight trading range between 22.16 and 24.04 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Hanging Man which are both known as bearish patterns. The last time a Bearish Hikkake Pattern showed up on May 7th, SIX actually gained 11.59% on the following trading day.
After having been unable to move above 23.59 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 23.62.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 24.04 where further buy stops could get activated. Trading close to March's high at 25.99 we might see further upside momentum if potential buy stops at the level get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Six Flags. Out of 159 times, SIX closed higher 57.86% 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 59.75% with an average market move of 0.72%.