CBRE closes within prior day's range after lackluster session
CBRE Group Inc Class A (CBRE) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CBRE finished the week 11.98% higher at 40.30 after edging lower $0.45 (-1.1%) today, notably underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CBRE as at May 22, 2020):
Friday's trading range has been $0.84 (2.06%), that's far below the last trading month's daily average range of $1.87. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CBRE.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical resistance level at 41.41 (R1). After having been unable to move above 40.84 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 40.92. The last time this happened on May 12th, CBRE lost -6.34% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
As prices are trading close to May's high at 42.54, upside momentum could accelerate should the share mark new highs for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for CBRE Group. Out of 82 times, CBRE closed higher 57.32% 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 52.44% with an average market move of 0.89%.