SYK pushes through key technical resistance level
Stryker Corporation (SYK) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SYK finished the week 3.13% higher at 221.54 after surging $4.13 (1.9%) today, significantly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 221.54 marks the highest recorded closing price since August 29, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 218.23, the stock confirmed its breakout through the previous session high after trading up to $3.39 above it intraday.
Daily Candlestick Chart (SYK as at Feb 14, 2020):
Friday's trading range has been $5.10 (2.34%), that's above the last trading month's daily average range of $3.79. 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 higher than usual for SYK.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 218.90 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since January 23rd, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 215.38 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on January 21st, SYK gained 1.13% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2019's high at 223.45 is within reach and we could see further upside momentum should the share manage to break out beyond.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Stryker. Out of 96 times, SYK closed higher 50.00% 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 10 trading days, showing a win rate of 62.50% with an average market move of 0.10%.