SNY closes lower for the 3rd day in a row
Sanofi American Depositary Shares (SNY) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, SNY ended the week -2.16% lower at 49.93 after losing $0.07 (-0.14%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (SNY as at Feb 14, 2020):
Friday's trading range has been $0.29 (0.58%), that's far below the last trading month's daily average range of $0.51. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SNY.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Last Engulfing Bottom Pattern. The last time a Last Engulfing Bottom Pattern showed up on February 25, 2019, SNY gained 1.35% on the following trading day.
Prices are trading close to the key technical support level at 49.71 (S1). After having been unable to move above 50.20 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 50.12.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 49.71 where further sell stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for Sanofi American. Out of 38 times, SNY closed higher 60.53% 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 71.05% with an average market move of 1.54%.