SYY runs into sellers again around 55.20
Sysco Corporation (SYY) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SYY finished the month -0.91% lower at 54.66 after edging higher $0.24 (0.44%) today, strongly underperforming the S&P 500 (1.54%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (SYY as at Jun 30, 2020):
Tuesday's trading range has been $1.68 (3.11%), that's far below the last trading month's daily average range of $2.66. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SYY. Prices continued to consolidate within a tight trading range between 52.16 and 55.20 where it has been caught now for the last three trading days.
Prices are trading close to the key technical support level at 53.25 (S1). After having been unable to move above 54.95 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 55.20.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might accelerate should prices move below the nearby swing low at 52.16 where further sell stops could get activated. As prices are trading close to June's low at 51.81, downside momentum might speed up should the share mark new lows for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Sysco. Out of 696 times, SYY closed higher 51.87% 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 56.03% with an average market move of 0.55%.