CCI breaks below Thursday's low
Crown Castle International Corp. (CCI) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CCI ended the month -0.39% lower at 166.70 after tanking $3.51 (-2.06%) today on high volume, significantly underperforming the S&P 500 (0.77%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 167.10, the market confirmed its breakout through the previous session low after trading up to $1.20 below it intraday.
Daily Candlestick Chart (CCI as at Jul 31, 2020):
Friday's trading range has been $4.30 (2.54%), that's slightly above the last trading month's daily average range of $4.13. 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 bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 165.68 (S1). Crown Castle closed below the 50-day moving average at 168.00 for the first time since June 29th. When this moving average was crossed below the last time on June 26th, CCI actually gained 0.60% on the following trading day. After having been unable to move above 170.70 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 170.20.
While the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the nearby swing low at 164.72 where further sell stops might get triggered. Further selling could move prices lower should the market test June's close-by low at 159.15.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Crown Castle. Out of 254 times, CCI closed higher 56.69% 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 59.06% with an average market move of 1.12%.