SNA closes within previous day's range after lackluster session
Snap-On Incorporated (SNA) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
SNA ended the week 0.33% higher at 156.26 after gaining $0.92 (0.59%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.40 lower after the open, the market 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 (SNA as at Feb 14, 2020):
Friday's trading range has been $1.19 (0.77%), that's far below the last trading month's daily average range of $2.91. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SNA. Prices continued to consolidate within a tight trading range between 154.11 and 157.34 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on January 23rd, SNA actually lost -1.47% on the following trading day.
Prices are trading close to the key technical support level at 154.56 (S1). Prices are trading close to the key technical resistance level at 157.34 (R1). Snap-On Incorporated was bought again around 155.10 after having seen lows at 155.00, 155.43 and 155.16 in the last three trading sessions. Obviously there is something going on at that level.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could speed up should prices move above the close-by swing high at 157.34 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 155.00 where further sell stops might get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for Snap-On Incorporated. Out of 496 times, SNA closed higher 53.02% 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 56.45% with an average market move of 0.70%.