SPGI closes higher for the 4th day in a row
S&P Global Inc. (SPGI) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, SPGI ended Wednesday at 357.54 gaining $0.34 (0.1%), outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (SPGI as at Sep 16, 2020):
Wednesday's trading range has been $4.39 (1.23%), that's below the last trading month's daily average range of $8.37. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SPGI. Prices continued to consolidate within a tight trading range between 352.00 and 360.53 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern.
Prices are trading close to the key technical support level at 356.46 (S1). After having been unable to move lower than 354.63 in the prior session, S&P Global found buyers again around the same price level today at 355.65. The last time this happened on September 1st, SPGI gained 2.72% on the following trading day.
Though 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.
Buying could accelerate should prices move above the close-by swing high at 360.53 where further buy stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for S&P Global. Out of 598 times, SPGI closed higher 59.70% 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 69.57% with an average market move of 1.43%.