CCI breaks back above 50-day moving average
Crown Castle International Corp. (CCI) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CCI finished the month -2.79% lower at 167.35 after gaining $5.05 (3.11%) today, notably outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 163.49, Crown Castle confirmed its breakout through the prior session high after trading up to $4.50 above it intraday.
Daily Candlestick Chart (CCI as at Jun 30, 2020):
Tuesday's trading range has been $5.15 (3.16%), that's slightly above the last trading month's daily average range of $4.91. 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 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 50-day moving average at 162.48. After spiking up to 167.99 during the day, the market found resistance at the 20-day moving average at 167.46. The last time this happened on May 11th, CCI lost -3.49% 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.
Buying could accelerate should prices move above the nearby swing high at 170.79 where further buy stops might get triggered. With prices trading close to this year's high at 176.85, upside momentum could speed up should CCI be able to break out to new highs for the year.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Crown Castle. Out of 64 times, CCI closed higher 60.94% 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 56.25% with an average market move of 0.72%.