SPB runs into sellers around 59.71 for the third day in a row
Spectrum Brands Holdings Inc. (SPB) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
SPB ended Wednesday at 58.10 gaining $0.11 (0.19%), outperforming the S&P 500 (-0.46%). Trading $1.01 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Monday, SPB lost -2.04% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SPB as at Sep 16, 2020):
Wednesday's trading range has been $2.10 (3.58%), that's above the last trading month's daily average range of $1.62. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SPB.
Unable to break through the key technical resistance level at 58.92 (R1), the share closed below it after spiking up to 59.71 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. Spectrum Brands ran into sellers again today around 59.71 for the third trading day in a row after having found sellers at 59.83 in the prior session and at 59.59 two days ago.
Although 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 59.83 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Spectrum Brands. Out of 170 times, SPB closed higher 52.35% 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 54.71% with an average market move of 0.19%.