SON pushes through Wednesday's high
Sonoco Products Company (SON) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
SON ended Thursday at 43.99 gaining $2.50 (6.03%) on low volume, slightly underperforming the S&P 500 (6.24%). Closing above Wednesday's high at 43.97, the stock confirmed its breakout through the prior session high after trading up to $0.73 above it intraday.
Daily Candlestick Chart (SON as at Mar 26, 2020):
Thursday's trading range has been $3.24 (7.72%), that's slightly below the last trading month's daily average range of $3.53. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SON.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, SON actually lost -1.64% on the following trading day.
Prices are trading close to the key technical resistance level at 47.19 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 45.27 where further buy stops might get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Sonoco Products. Out of 786 times, SON closed higher 52.80% 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 54.83% with an average market move of 0.22%.