CC soars, gaining $3.69 (23.53%) within a single day on high volume
Chemours Company (CC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, CC ended the week 37.96% higher at 19.37 after surging $3.69 (23.53%) today on high volume, strongly outperforming the S&P 500 (0.18%) following Thursday's earnings report. This is the biggest single-day gain in over three years. Today's close at 19.37 marks the highest recorded closing price since November 12, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (CC as at Feb 14, 2020):
CC reported earnings of $0.56 per share after Thursday's market close. With analysts having expected an EPS of $0.43, Chemours Company beat market expectations by 30.2%. The company's last earnings report was released on Nov. 4, 2019, when Chemours Company reported earnings of $0.59 per share surpassing market expectations by 5.4%.
Friday's trading range has been $2.74 (16.38%), that's far above the last trading month's daily average range of $0.86. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CC.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close above the 200-day moving average at 18.06 for the first time since April 29, 2019. Prices are trading close to the key technical resistance level at 20.00 (R1).
Crossing above the upper Bollinger Band for the first time since December 19, 2019, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 15.29 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on December 19, 2019, CC actually lost -4.92% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 17 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Chemours. Out of 80 times, CC closed higher 56.25% 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 72.50% with an average market move of 4.86%.