SRCL closes higher for the 2nd day in a row
Stericycle Inc. (SRCL) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SRCL finished the month 2.1% higher at 55.98 after gaining $0.72 (1.3%) today, slightly underperforming the S&P 500 (1.54%). Closing above Monday's high at 55.96, the share confirmed its breakout through the prior session high after trading up to $0.35 above it intraday.
Daily Candlestick Chart (SRCL as at Jun 30, 2020):
Tuesday's trading range has been $1.65 (3.0%), that's below the last trading month's daily average range of $2.33. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SRCL.
Notwithstanding a weak opening the stock managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on June 25th, SRCL actually lost -1.48% on the following trading day.
The market 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 nearby swing high at 57.64 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 54.06 where further sell stops could get activated. As prices are trading close to June's low at 53.98, downside momentum might speed up should Stericycle mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Stericycle. Out of 59 times, SRCL closed higher 59.32% 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 67.80% with an average market move of 1.56%.