SNA closes higher for the 3rd day in a row
Snap-On Incorporated (SNA) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SNA finished Thursday at 113.54 gaining $3.60 (3.27%), notably underperforming the S&P 500 (6.24%). Trading up to $2.60 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on March 17th, SNA actually lost -11.50% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SNA as at Mar 26, 2020):
Thursday's trading range has been $5.59 (5.03%), that's below the last trading month's daily average range of $9.00. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for SNA.
After trading down to 108.46 earlier during the day, the share bounced off the key technical support level at 109.69 (S1). The failure to close below the support might increase that levels importance as support going forward. After having been unable to move above 113.68 in the prior session, Snap-On Incorporated ran into sellers again around the same price level today, failing to move higher than 114.05.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Snap-On Incorporated. Out of 469 times, SNA closed higher 57.78% 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 59.91% with an average market move of 0.73%.