SRG runs into sellers again around 12.38
Seritage Growth Properties Class A (SRG) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
SRG finished Thursday at 8.85 losing $2.32 (-20.77%) on high volume, strongly underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SRG as at Mar 26, 2020):
Thursday's trading range has been $4.23 (37.24%), that's above the last trading month's daily average range of $2.83. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for SRG.
One bearish candlestick pattern matches today's price action, the Black Candle.
After having been unable to move above 12.85 in the prior session, Seritage Growth ran into sellers again around the same price level today, missing to move higher than 12.38. The last time this happened on March 20th, SRG actually gained 10.79% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Its common bearish interpretation has been confirmed for Seritage Growth. Out of 262 times, SRG closed lower 58.02% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 56.49% with an average market move of -0.95%.