CACC unable to break through key resistance level
Credit Acceptance Corporation (CACC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CACC ended Thursday at 301.79 gaining $21.08 (7.51%), notably outperforming the S&P 500 (6.24%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CACC as at Mar 26, 2020):
Thursday's trading range has been $44.88 (15.75%), that's above the last trading month's daily average range of $34.85. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for CACC.
Unable to break through the key technical resistance level at 309.88 (R1), Credit Acceptance closed below it after spiking up to 329.89 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Credit Acceptance. Out of 171 times, CACC closed lower 54.97% of the time on the next trading day after the market condition occurred.