SNDR finds buyers around 25.69 for the third day in a row
Schneider National Inc. (SNDR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
SNDR ended Wednesday at 25.83 losing $0.53 (-2.01%), significantly underperforming the S&P 500 (-0.46%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SNDR as at Sep 16, 2020):
Wednesday's trading range has been $0.93 (3.5%), that's far above the last trading month's daily average range of $0.65. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SNDR.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
Prices are trading close to the key technical support level at 25.62 (S1). The stock closed back below the 50-day moving average at 26.02. When this moving average was crossed below the last time on Monday, SNDR actually gained 2.21% on the following trading day. The share found buyers again today around 25.69 for the third trading day in a row after having found demand at 25.71 in the previous session and at 25.62 two days ago.
Crossing below the lower Bollinger Band for the first time since Monday, prices have shown unusually strong downward momentum in the short-term. This might either indicate a potential selling climax after which prices could head back up towards the mean of the Bollinger Bands at 26.95 or signal the beginning of a strong momentum breakout leading to even lower prices.
While the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could accelerate should prices move below the nearby swing low at 25.62 where further sell stops might get triggered.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the lower Bollinger Band" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Schneider National. Out of 21 times, SNDR closed higher 61.90% 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 two trading days, showing a win rate of 66.67% with an average market move of 0.50%.