SRCL breaks back below 20-day moving average
Stericycle Inc. (SRCL) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
SRCL ended Wednesday at 63.20 losing $0.27 (-0.43%) on high volume, but still slightly outperforming the S&P 500 (-0.46%). Trading $0.63 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on September 11th, SRCL actually gained 1.00% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SRCL as at Sep 16, 2020):
Wednesday's trading range has been $1.31 (2.05%), that's slightly below the last trading month's daily average range of $1.45. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SRCL.
Prices are trading close to the key technical support level at 63.06 (S1). The stock closed back below the 20-day moving average at 63.22.
Although Stericycle is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Stericycle. Out of 158 times, SRCL closed higher 59.49% 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 nine trading days, showing a win rate of 55.70% with an average market move of 0.02%.