CBOE closes above its opening price after recovering from early selling pressure
Cboe Global Markets Inc. (CBOE) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
CBOE finished the month -5.98% lower at 87.70 after gaining $0.81 (0.93%) today on high volume, slightly outperforming the S&P 500 (0.77%) following today's earnings report. Trading up to $1.85 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 30th, CBOE gained 3.41% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CBOE as at Jul 31, 2020):
CBOE reported earnings of $1.31 per share before today's market open. With analysts having expected an EPS of $1.26, Cboe Global Markets Inc. topped market expectations by 4.0%. The company's last earnings report was released on May 1, 2020, when Cboe Global Markets Inc. reported earnings of $1.65 per share topping market expectations by 7.8%.
Friday's trading range has been $2.30 (2.63%), that's slightly below the last trading month's daily average range of $2.35. 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 CBOE.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Takuri Line which are both known as bullish patterns.
After trading down to 85.54 earlier during the day, Cboe Global bounced off the key technical support level at 87.22 (S1). The failure to close below the support might increase that levels importance as support going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 89.50 where further buy stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Its common bullish interpretation has been confirmed for Cboe Global. Out of 61 times, CBOE closed higher 65.57% 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 73.77% with an average market move of 2.19%.