STE breaks back above 100-day moving average
STERIS plc (STE) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, STE ended the month -7.5% lower at 153.44 after gaining $3.76 (2.51%) today, outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 151.02, the stock confirmed its breakout through the previous session high after trading up to $3.25 above it intraday.
Daily Candlestick Chart (STE as at Jun 30, 2020):
Tuesday's trading range has been $4.82 (3.23%), that's above the last trading month's daily average range of $3.88. 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 lower than usual for STE.
Regardless of a weak opening the share managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Belt-hold and the White Candle which are both known as bullish patterns. The last time a Bullish Belt-hold showed up on April 23, 2019, STE gained 1.50% on the following trading day.
STERIS plc managed to close back above the 100-day moving average at 150.68 for the first time since June 23rd. Prices are trading close to the key technical resistance level at 154.37 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 156.16 where further buy stops might get activated.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Belt-hold" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for STERIS plc. Out of 13 times, STE closed lower 69.23% 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 46.15% with an average market move of -0.34%.