CCI breaks below key technical support level
Crown Castle International Corp. (CCI) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
CCI ended Wednesday at 164.52 losing $1.36 (-0.82%), strongly underperforming the S&P 500 (0.64%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CCI as at Aug 05, 2020):
Wednesday's trading range has been $2.84 (1.71%), that's below the last trading month's daily average range of $3.94. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CCI.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on June 23rd, CCI lost -2.07% on the following trading day.
Prices broke below the key technical support level at 165.68 (now R1), which is likely to act as resistance going forward. After having been unable to move lower than 164.15 in the prior session, Crown Castle found buyers again around the same price level today at 163.73.
Although the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the nearby swing high at 167.77 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 162.00 where further sell stops could get triggered. Trading close to June's low at 159.15 we might see further downside momentum if potential sell stops at the level get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Crown Castle. Out of 263 times, CCI closed higher 53.99% 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 62.74% with an average market move of 1.17%.