SYK closes higher for the 3rd day in a row
Stryker Corporation (SYK) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SYK ended Thursday at 163.33 gaining $10.28 (6.72%), slightly outperforming the S&P 500 (6.24%). Closing above Wednesday's high at 158.22, the stock confirmed its breakout through the previous session high after trading up to $7.66 above it intraday.
Daily Candlestick Chart (SYK as at Mar 26, 2020):
Thursday's trading range has been $12.83 (8.27%), that's slightly above the last trading month's daily average range of $11.92. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SYK.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, SYK gained 6.70% on the following trading day.
Buyers managed to take out the key technical resistance level at 156.88 (now S1), which is likely to act as support going forward. After spiking up to 165.88 during the day, Stryker found resistance at the 20-day moving average at 164.95.
Though the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Stryker. Out of 45 times, SYK closed higher 64.44% 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 64.44% with an average market move of 1.37%.