SPGI breaks back below 20-day moving average
S&P Global Inc. (SPGI) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SPGI finished the month 6.3% higher at 350.25 after losing $2.12 (-0.6%) today, notably 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 (SPGI as at Jul 31, 2020):
Friday's trading range has been $9.91 (2.8%), that's above the last trading month's daily average range of $8.00. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SPGI.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern.
S&P Global closed back below the 20-day moving average at 351.34. When this moving average was crossed below the last time on Tuesday, SPGI actually gained 3.53% on the following trading day.
Although the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could accelerate should prices move below the close-by swing low at 343.62 where further sell stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for S&P Global. Out of 97 times, SPGI closed higher 57.73% 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 75.26% with an average market move of 1.53%.