SYK breaks below Thursday's low
Stryker Corporation (SYK) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SYK ended the week 2.15% higher at 184.14 after edging lower $0.95 (-0.51%) today, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 184.46, the share confirmed its breakout through the previous session low after trading up to $1.85 below it intraday.
Daily Candlestick Chart (SYK as at May 22, 2020):
Friday's trading range has been $2.95 (1.59%), that's far below the last trading month's daily average range of $6.54. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SYK.
Prices broke below the key technical support level at 185.03 (now R1), which is likely to act as resistance going forward. The last time this happened on May 13th, SYK lost -0.97% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the three 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. Although it is usually interpreted as bearish, it has actually shown to be bullish for Stryker. Out of 368 times, SYK closed higher 53.53% 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 61.41% with an average market move of 0.82%.