SYY closes within previous day's range after lackluster session
Sysco Corporation (SYY) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SYY finished the week 1.1% higher at 78.21 after gaining $0.27 (0.35%) today on low volume, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.25 higher after the open, Sysco was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (SYY as at Feb 14, 2020):
Friday's trading range has been $0.53 (0.68%), that's below the last trading month's daily average range of $1.33. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for SYY.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji.
Prices are trading close to the key technical support level at 77.75 (S1). After having been unable to move above 78.63 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 78.48. The last time this happened on February 5th, SYY actually gained 1.22% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 78.63 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Sysco. Out of 159 times, SYY closed higher 55.97% 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 57.23% with an average market move of 0.72%.