SRCL finds buyers at key support level
Stericycle Inc. (SRCL) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SRCL finished the month 7.97% higher at 60.44 after losing $0.74 (-1.21%) today, notably underperforming the S&P 500 (0.77%). Closing below Thursday's low at 60.54, Stericycle confirmed its breakout through the previous session low after trading up to $1.13 below it intraday.
Daily Candlestick Chart (SRCL as at Jul 31, 2020):
Friday's trading range has been $1.88 (3.08%), that's above the last trading month's daily average range of $1.60. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SRCL.
After trading down to 59.41 earlier during the day, the share bounced off the key technical support level at 59.89 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on July 9th, SRCL gained 3.68% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Stericycle. Out of 479 times, SRCL closed higher 57.41% 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 54.07% with an average market move of 0.28%.