CBOE stuck within tight trading range
Cboe Global Markets Inc. (CBOE) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
CBOE finished Wednesday at 90.56 gaining $0.95 (1.06%), significantly outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CBOE as at Sep 16, 2020):
Wednesday's trading range has been $1.40 (1.56%), that's far below the last trading month's daily average range of $2.52. Weekly volatility is also lower, being 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 88.63 and 91.06 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on September 11th, CBOE gained 1.23% on the following trading day.
The market managed to close back above the 50-day moving average at 89.74. After having been unable to move above 90.88 in the previous session, Cboe Global ran into sellers again around the same price level today, failing to move higher than 91.06.
Though the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the nearby swing high at 91.48 where further buy stops could get triggered. Further buying might move prices higher should the market test August's close-by high at 94.27.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Cboe Global. Out of 89 times, CBOE closed higher 58.43% 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 61.80% with an average market move of 1.09%.