SNA breaks back below 200-day moving average
Snap-On Incorporated (SNA) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
SNA ended the week -3.05% lower at 163.14 after losing $2.28 (-1.38%) today, underperforming the S&P 500 (-0.58%). Trading $2.04 higher after the open, Snap-On Incorporated was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (SNA as at May 17, 2019):
Friday's trading range has been $2.84 (1.73%), that's slightly below the last trading month's daily average range of $3.14. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for SNA.
Prices are trading close to the key technical support level at 160.60 (S1). The share closed back below the 200-day moving average at 163.62. When this moving average was crossed below the last time on Monday, SNA actually gained 1.15% on the following trading day.
While the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the nearby swing high at 166.51 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 159.93 where further sell stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Snap-On Incorporated. Out of 384 times, SNA closed higher 53.39% 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 58.07% with an average market move of 0.54%.