SYK plummets, losing $6.90 (-3.45%) within a single day on high volume


Stryker Corporation (SYK) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team

Highlights

SYK tanks $6.90 (-3.45%) after posting strong earnings
SYK crashes, losing $6.90 (-3.45%) within a single day on high volume
SYK breaks back below 200-day moving average
SYK finds support at 50-day moving average
SYK closes lower for the 2nd day in a row

Overview

Moving lower for the 2nd day in a row, SYK finished the month 7.28% higher at 193.30 after tanking $6.90 (-3.45%) today on high volume, notably underperforming the S&P 500 (0.77%) following Thursday's earnings report. This is the biggest single-day loss in over a month. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.

Daily Candlestick Chart (SYK as at Jul 31, 2020):

Daily technical analysis candlestick chart for Stryker Corporation (SYK) as at Jul 31, 2020

SYK reported earnings of $0.64 per share after Thursday's market close. With analysts having expected an EPS of $0.62, Stryker Corporation topped market expectations by 3.2%. The company's last earnings report was released on April 30, 2020, when Stryker Corporation reported earnings of $1.84 per share beating market expectations by 9.5%.

Friday's trading range has been $8.60 (4.4%), that's far above the last trading month's daily average range of $4.70. Weekly volatility is also higher, being slightly above 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 Bullish Hikkake Pattern.

After trading as low as 188.00 during the day, the market found support at the 50-day moving average at 189.55. The stock closed back below the 200-day moving average at 194.20. When this moving average was crossed below the last time on Tuesday, SYK actually gained 3.67% on the following trading day.

The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.

Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 200" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Stryker. Out of 36 times, SYK closed higher 58.33% 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 66.67% with an average market move of 1.19%.


Market Conditions for SYK as at Jul 31, 2020

Loading Market Conditions for SYK (Stryker Corporation)...
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