CBOE closes within prior day's range after lackluster session
Cboe Global Markets Inc. (CBOE) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CBOE ended the month -12.38% lower at 93.28 after edging higher $0.47 (0.51%) today, notably underperforming the S&P 500 (1.54%). Trading up to $1.09 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 25th, CBOE actually lost -3.76% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CBOE as at Jun 30, 2020):
Tuesday's trading range has been $2.51 (2.73%), that's below the last trading month's daily average range of $3.22. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CBOE. Prices continued to consolidate within a tight trading range between 90.87 and 94.13 where it has been caught now for the last three trading days.
In spite of a weak opening the stock managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 95.41 (R1). The share found buyers again today around 90.87 for the third trading day in a row after having found demand at 91.26 in the previous session and at 91.25 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Cboe Global. Out of 76 times, CBOE closed higher 51.32% 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 71.05% with an average market move of 1.45%.