CABO slips to lowest close since April 23rd
Cable One Inc. (CABO) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CABO ended the week -3.23% lower at 1776.00 after losing $62.02 (-3.37%) today, notably underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 1776.00 marks the lowest recorded closing price since April 23rd. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 1792.16, the share confirmed its breakout through the prior session low after trading up to $21.39 below it intraday.
Daily Candlestick Chart (CABO as at May 22, 2020):
Friday's trading range has been $54.13 (2.97%), that's far below the last trading month's daily average range of $85.17. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CABO.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle.
After trading down to 1770.77 earlier during the day, Cable One bounced off the key technical support level at 1772.24 (S1). The failure to close below the support might increase that levels significance as support going forward.
Crossing below the lower Bollinger Band for the first time since March 18th, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 1874.90 or signal the beginning of a strong momentum breakout leading to even lower prices. The last time prices broke out below the lower Bollinger Band on March 18th, CABO actually gained 7.27% on the following trading day.
Although the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Cable One. Out of 42 times, CABO closed higher 64.29% 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 78.57% with an average market move of 4.43%.