CBOE finds buyers around 85.25 for the forth day in a row
Cboe Global Markets Inc. (CBOE) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
CBOE finished Wednesday at 86.67 gaining $1.09 (1.27%) on high volume, outperforming the S&P 500 (0.64%). Trading up to $1.10 lower after the open, Cboe Global managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on July 31st, CBOE actually lost -1.56% 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 Aug 05, 2020):
Wednesday's trading range has been $2.71 (3.14%), that's slightly above the last trading month's daily average range of $2.52. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CBOE. Prices continued to consolidate within a tight trading range between 85.15 and 88.29 where it has been caught now for the last three trading days.
Three candlestick patterns are matching today's price action, the Bullish High-Wave Candle, the Bullish Hikkake Pattern and the Bullish Spinning Top which are known as bullish patterns.
Unable to break through the key technical resistance level at 87.22 (R1), the share closed below it after spiking up to 87.96 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. The market was bought again around 85.25 after having seen lows at 85.58, 85.15 and 85.54 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 88.29 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 85.15 where further sell stops could get activated.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous three Lows" stand out. Its common bullish interpretation has been confirmed for Cboe Global. Out of 23 times, CBOE closed higher 69.57% 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 60.87% with an average market move of 0.61%.