SRCL closes lower for the 2nd day in a row
Stericycle Inc. (SRCL) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SRCL ended the week 6.44% higher at 51.09 after edging lower $0.16 (-0.31%) today, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 51.10, the market confirmed its breakout through the previous session low after trading up to $1.20 below it intraday.
Daily Candlestick Chart (SRCL as at May 22, 2020):
Friday's trading range has been $1.36 (2.65%), that's below the last trading month's daily average range of $2.22. 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 SRCL.
One bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on February 18th, SRCL actually gained 1.79% on the following trading day.
Prices are trading close to the key technical resistance level at 51.84 (R1).
Stericycle shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 52.52 where further buy stops could get triggered. As prices are trading close to May's high at 52.63, upside momentum might accelerate should the share mark new highs for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Stericycle. Out of 285 times, SRCL closed higher 53.33% of the time on the next trading day after the market condition occurred.