SNA unable to break through key resistance level
Snap-On Incorporated (SNA) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
SNA finished the month 5.31% higher at 145.87 after edging higher $0.57 (0.39%) today on high volume, slightly underperforming the S&P 500 (0.77%) following today's earnings report. Trading up to $3.95 lower after the open, the share 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.
Daily Candlestick Chart (SNA as at Jul 31, 2020):
SNA reported earnings of $1.91 per share before today's market open. With analysts having expected an EPS of $1.93, Snap-On Incorporated missed market expectations by -1.0%. The company's last earnings report was released on April 21, 2020, when Snap-On Incorporated reported earnings of $2.6 per share missing market expectations by -5.5%.
Friday's trading range has been $5.34 (3.67%), that's far above the last trading month's daily average range of $3.65. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SNA. Prices continued to consolidate within a tight trading range between 141.55 and 146.89 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Hanging Man showed up on March 27th, SNA actually gained 4.80% on the following trading day.
Unable to break through the key technical resistance level at 146.04 (R1), the market closed below it after spiking up to 146.89 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. The stock ran into sellers again today around 146.89 for the third trading day in a row after having found sellers at 146.85 in the previous session and at 146.37 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post Earnings Report" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Snap-On Incorporated. Out of 31 times, SNA closed higher 64.52% 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 70.97% with an average market move of 1.59%.