SQM closes above its opening price after recovering from early selling pressure
Sociedad Quimica y Minera S.A. (SQM) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
SQM ended the month 17.18% higher at 30.55 after gaining $0.17 (0.56%) today, slightly underperforming the S&P 500 (0.77%). Trading up to $0.21 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on July 24th, SQM gained 2.35% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SQM as at Jul 31, 2020):
Friday's trading range has been $0.45 (1.48%), that's below the last trading month's daily average range of $0.91. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SQM.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 31.12 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 30.01 where further sell stops could 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 bearish for Sociedad Quimica. Out of 745 times, SQM closed lower 50.34% of the time on the next trading day after the market condition occurred.