SPGI closes above its opening price after recovering from early selling pressure
S&P Global Inc. (SPGI) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
SPGI ended the week 2.88% higher at 311.86 after edging higher $1.10 (0.35%) today on low volume, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $3.42 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (SPGI as at May 22, 2020):
Friday's trading range has been $5.11 (1.64%), that's below the last trading month's daily average range of $7.79. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SPGI.
One bearish candlestick pattern matches today's price action, the Hanging Man.
After trading down to 307.52 earlier during the day, S&P Global bounced off the key technical support level at 308.41 (S1). The failure to close below the support could increase that levels significance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term. With its 50-day moving average crossing above its 200-day moving average, the share has entered a so-called "Golden Cross" for the first time since April 21st. Showing increasing upward momentum in the short and medium-term the "Golden Cross" is known to indicate a potential bull market on the horizon. When the last "Golden Cross" happened on March 21, 2019, SPGI actually lost -2.04% on the following trading day.
Buying might accelerate should prices move above the close-by swing high at 317.29 where further buy stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for S&P Global. Out of 743 times, SPGI closed higher 57.87% 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 67.43% with an average market move of 1.27%.