CACI dominated by bears dragging the market lower throughout the day
CACI International Inc. Class A (CACI) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
CACI finished the week 1.43% higher at 275.88 after losing $2.15 (-0.77%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CACI as at Feb 14, 2020):
Friday's trading range has been $4.31 (1.54%), that's slightly below the last trading month's daily average range of $4.91. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for CACI.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 273.25 (S1). After having been unable to move above 279.20 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 279.86. The last time this happened on Wednesday, CACI actually gained 2.00% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 280.67, upside momentum might accelerate should the stock be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for CACI International. Out of 267 times, CACI closed higher 55.43% 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 60.67% with an average market move of 1.18%.