SNA closes lower for the 2nd day in a row
Snap-On Incorporated (SNA) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SNA ended the week 4.82% higher at 128.88 after losing $3.99 (-3.0%) today, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 132.70, the share confirmed its breakout through the previous session low after trading up to $4.36 below it intraday.
Daily Candlestick Chart (SNA as at May 22, 2020):
Friday's trading range has been $5.31 (3.97%), that's slightly above the last trading month's daily average range of $4.95. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SNA.
Notwithstanding a strong opening the market closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Belt-hold and the Black Candle which are both known as bearish patterns. The last time a Bearish Belt-hold showed up on February 25th, SNA lost -2.72% on the following trading day.
Prices are trading close to the key technical support level at 125.51 (S1).
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Snap-On Incorporated. Out of 272 times, SNA closed higher 56.62% 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 58.82% with an average market move of 0.74%.