CC plunges -4.98% on high volume
Chemours Company (CC) Technical Analysis Report for Sep 21, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CC ended Monday at 20.59 tanking $1.08 (-4.98%) on high volume, significantly underperforming the S&P 500 (-1.16%). This is the biggest single-day loss in over two weeks. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (CC as at Sep 21, 2020):
Monday's trading range has been $1.63 (7.8%), that's far above the last trading month's daily average range of $0.96. 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 CC.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Hanging Man showed up on September 2nd, CC lost -7.07% on the following trading day.
After trading as low as 19.44 during the day, Chemours found support at the 50-day moving average at 19.70. The market closed back below the 20-day moving average at 21.02 for the first time since September 10th.
Though 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 nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Chemours. Out of 44 times, CC closed higher 50.00% 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 63.64% with an average market move of 3.80%.