CBRE closes below its opening price unable to hold early session gains
CBRE Group Inc Class A (CBRE) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
CBRE finished the week -0.11% lower at 63.96 after losing $0.16 (-0.25%) today on low volume, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.27 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 prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CBRE as at Feb 14, 2020):
Friday's trading range has been $0.45 (0.7%), that's far below the last trading month's daily average range of $0.95. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for CBRE.
After moving higher in the prior session, the market closed lower but above the previous day's open today, forming a bearish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Shooting Star which are both known as bearish patterns. The last time a Shooting Star showed up on December 9, 2019, CBRE actually gained 0.34% on the following trading day.
Prices are trading close to the key technical resistance level at 64.61 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 64.75 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for CBRE Group. Out of 45 times, CBRE closed higher 55.56% 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 57.78% with an average market move of 1.86%.