SUM runs into sellers again around 17.56
Summit Materials Inc. Class A (SUM) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
SUM ended Wednesday at 17.08 losing $0.08 (-0.47%), slightly underperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SUM as at Sep 16, 2020):
Wednesday's trading range has been $0.81 (4.66%), that's above the last trading month's daily average range of $0.66. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SUM.
After trading down to 16.75 earlier during the day, the stock bounced off the key technical support level at 17.02 (S1). The failure to close below the support could increase that levels significance as support going forward. After having been unable to move above 17.63 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 17.56. The last time this happened on August 28th, SUM lost -3.87% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 15.72.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 17.63 where further buy stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Its common bearish interpretation has been confirmed for Summit Materials. Out of 307 times, SUM closed lower 50.81% 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 49.19% with an average market move of 0.31%.