CCI breaks back above 100-day moving average
Crown Castle International Corp. (CCI) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CCI ended the week 4.04% higher at 156.20 after surging $5.37 (3.56%) today, notably outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 152.76, Crown Castle confirmed its breakout through the previous session high after trading up to $4.07 above it intraday.
Daily Candlestick Chart (CCI as at May 22, 2020):
Friday's trading range has been $6.82 (4.5%), that's above the last trading month's daily average range of $4.88. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CCI.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close back above the 100-day moving average at 151.73. When this moving average was crossed above the last time on Monday, CCI actually lost -2.46% on the following trading day. Prices are trading close to the key technical resistance level at 158.15 (R1).
Though the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 157.45 where further buy stops might get activated. As prices are trading close to May's high at 160.83, upside momentum could accelerate should the share mark new highs for the month.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for Crown Castle. Out of 608 times, CCI closed higher 54.77% 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 57.89% with an average market move of 0.57%.