CCI closes above its opening price after recovering from early selling pressure
Crown Castle International Corp. (CCI) Technical Analysis Report for Apr 18, 2019 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, CCI ended Thursday at 122.62 losing $1.55 (-1.25%) on high volume, strongly underperforming the S&P 500 (0.16%) following Wednesday's earnings report. Today's close at 122.62 marks the lowest recorded closing price since March 8th. Trading up to $1.94 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (CCI as at Apr 18, 2019):
CCI reported earnings of $0.44 per share after Wednesday's market close. With analysts having expected an EPS of $1.42, Crown Castle International Corp. failed market expectations by -69.0%. The company's last earnings report was released on Jan. 23, 2019, when Crown Castle International Corp. reported earnings of $0.44 per share failing market expectations by -69.2%.
Thursday's trading range has been $4.13 (3.39%), that's far above the last trading month's daily average range of $2.09. 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 CCI.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 119.81 earlier during the day, the market bounced off the key technical support level at 120.23 (S1). The failure to close below the support could increase that levels significance as support going forward. Crown Castle closed below the 50-day moving average at 123.39 for the first time since January 22nd.
Crossing below the lower Bollinger Band for the first time since December 24, 2018, prices have shown unusually strong downward momentum in the short-term. This might either indicate a potential selling climax after which prices could head back up towards the mean of the Bollinger Bands at 127.18 or signal the beginning of a strong momentum breakout leading to even lower prices. The last time prices broke out below the lower Bollinger Band on December 21, 2018, CCI lost -2.19% on the following trading day.
Though the share is currently in a short-term downtrend, this might 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 Stock Earning Report based market condition "Trading Day post weak Earnings Report" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Crown Castle. Out of 20 times, CCI closed higher 60.00% of the time on the next trading day after the market condition occurred.