SNE dominated by bears dragging the market lower throughout the day
Sony Corporation (SNE) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
SNE finished Wednesday at 76.99 gaining $0.53 (0.69%) on high volume, significantly outperforming 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 (SNE as at Sep 16, 2020):
Wednesday's trading range has been $1.11 (1.43%), that's slightly below the last trading month's daily average range of $1.17. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SNE.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on September 10th, SNE actually gained 0.68% on the following trading day.
Although the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the close-by swing high at 78.26 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 76.23 where further sell stops might get activated. As prices are trading close to September's low at 75.60, downside momentum could accelerate should Sony mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Sony. Out of 420 times, SNE closed higher 53.33% 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 56.90% with an average market move of 0.89%.