CBRL breaks below Wednesday's low
Cracker Barrel Old Country Store Inc. (CBRL) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CBRL ended Thursday at 85.31 losing $7.02 (-7.6%), notably underperforming the S&P 500 (6.24%). Closing below Wednesday's low at 91.53, the share confirmed its breakout through the prior session low after trading up to $8.73 below it intraday.
Daily Candlestick Chart (CBRL as at Mar 26, 2020):
Thursday's trading range has been $12.69 (13.55%), that's slightly above the last trading month's daily average range of $11.16. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for CBRL.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on March 20th, CBRL actually gained 21.89% on the following trading day.
Prices broke below the key technical support level at 88.00 (now R1), which is likely to act as resistance going forward.
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 "Down Close Near Low of Period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Cracker Barrel. Out of 468 times, CBRL closed higher 58.55% 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 57.48% with an average market move of 0.36%.