SRCL closes above its opening price after recovering from early selling pressure
Stericycle Inc. (SRCL) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SRCL ended Thursday at 43.15 edging higher $0.91 (2.15%), notably underperforming the S&P 500 (6.24%). Trading up to $2.09 lower after the open, Stericycle 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 (SRCL as at Mar 26, 2020):
Thursday's trading range has been $2.74 (6.39%), that's far below the last trading month's daily average range of $5.27. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for SRCL. Prices continued to consolidate within a tight trading range between 38.45 and 44.66 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, two candlestick patterns are matching today's price action, the Bullish Spinning Top and the Takuri Line which are both known as bullish patterns. The last time a Takuri Line showed up on March 10th, SRCL actually lost -7.03% on the following trading day.
Prices are trading close to the key technical resistance level at 45.41 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
2019's low at 35.84 is within reach and we might see further downside momentum should the share break out beyond.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for Stericycle. Out of 640 times, SRCL closed higher 53.13% 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 four trading days, showing a win rate of 54.69% with an average market move of 0.03%.