SRG closes lower for the 2nd day in a row
Seritage Growth Properties Class A (SRG) Technical Analysis Report for Sep 18, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SRG finished the week -0.07% lower at 14.59 after losing $0.46 (-3.06%) today, strongly underperforming the S&P 500 (-1.12%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 15.00, the share confirmed its breakout through the prior session low after trading up to $0.58 below it intraday.
Daily Candlestick Chart (SRG as at Sep 18, 2020):
Friday's trading range has been $0.66 (4.38%), that's below the last trading month's daily average range of $0.89. 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 SRG.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 14.42 during the day, the stock found support at the 20-day moving average at 14.51. The last time this happened on April 16th, SRG gained 13.97% on the following trading day.
Though Seritage Growth is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the nearby swing low at 14.33 where further sell stops could get triggered. As prices are trading close to September's low at 13.51, downside momentum might accelerate should the market mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Its common bearish interpretation has been confirmed for Seritage Growth. Out of 280 times, SRG closed lower 55.71% 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 56.07% with an average market move of -1.25%.