SNY closes within previous day's range
Sanofi American Depositary Shares (SNY) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SNY finished the month 2.74% higher at 52.45 after edging lower $0.05 (-0.1%) today on high volume, underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SNY as at Jul 31, 2020):
Friday's trading range has been $1.26 (2.38%), that's above the last trading month's daily average range of $0.90. 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 slightly higher than usual for SNY. Prices continued to consolidate within a tight trading range between 51.53 and 53.13 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical resistance level at 52.94 (R1).
While the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 53.13 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 51.53 where further sell stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Sanofi American. Out of 306 times, SNY closed higher 57.19% 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 58.17% with an average market move of 0.67%.