CBRE finds buyers again around 38.53
CBRE Group Inc Class A (CBRE) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 7th day in a row, CBRE ended the week -7.51% lower at 38.91 after edging lower $0.10 (-0.26%) today, significantly underperforming the S&P 500 (1.42%). Today's close at 38.91 marks the lowest recorded closing price since October 9, 2017. Trading $0.60 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CBRE as at Oct 12, 2018):
Friday's trading range has been $1.51 (3.83%), that's far above the last trading month's daily average range of $0.93. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for CBRE.
After having been unable to move lower than 38.62 in the previous session, CBRE Group found buyers again around the same price level today at 38.53. The last time this happened on Monday, CBRE actually lost -2.04% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 43.47.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "7 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for CBRE Group. Out of 5 times, CBRE closed higher 80.00% 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 80.00% with an average market move of 2.53%.