SYY closes lower for the 2nd day in a row
Sysco Corporation (SYY) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SYY ended the month -3.31% lower at 52.85 after losing $0.74 (-1.38%) today, strongly underperforming the S&P 500 (0.77%). 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 Jul 31, 2020):
Friday's trading range has been $1.24 (2.33%), that's below the last trading month's daily average range of $1.57. 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.
After having been unable to move lower than 52.33 in the previous session, the market found buyers again around the same price level today at 52.21. The last time this happened on July 24th, SYY actually lost -1.73% 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.
Buying might accelerate should prices move above the nearby swing high at 54.35 where further buy stops could get activated. As prices are trading close to July's low at 50.03, downside momentum might speed up should Sysco mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Sysco. Out of 267 times, SYY closed higher 55.81% 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 57.30% with an average market move of 0.54%.