CBRL closes lower for the 2nd day in a row
Cracker Barrel Old Country Store Inc. (CBRL) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CBRL finished Wednesday at 124.97 tanking $6.24 (-4.76%) on high volume, strongly underperforming the S&P 500 (-0.46%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 128.40, Cracker Barrel confirmed its breakout through the previous session low after trading up to $5.93 below it intraday.
Daily Candlestick Chart (CBRL as at Sep 16, 2020):
Wednesday's trading range has been $10.83 (8.12%), that's far above the last trading month's daily average range of $5.12. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CBRL.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 120.80 (S1). The market closed below the 20-day moving average at 129.97 for the first time since July 21st. When this moving average was crossed below the last time on July 17th, CBRL lost -2.80% on the following trading day.
Although the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Cracker Barrel. Out of 282 times, CBRL closed higher 56.38% 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 58.51% with an average market move of 0.93%.