CDAY finds buyers at key support level
Ceridian HCM Holding Inc. (CDAY) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
CDAY finished the week 3.11% higher at 50.76 after edging lower $0.45 (-0.88%) today, underperforming the S&P 500 (-0.16%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CDAY as at Jun 14, 2019):
Friday's trading range has been $1.17 (2.3%), that's below the last trading month's daily average range of $1.64. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for CDAY.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Hanging Man which are both known as bearish patterns.
After trading down to 49.95 earlier during the day, the share bounced off the key technical support level at 50.60 (S1). The failure to close below the support might increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 51.88 (R1). After having been unable to move lower than 49.87 in the prior session, Ceridian HCM found buyers again around the same price level today at 49.95. The last time this happened on May 24th, CDAY gained 1.61% on the following trading day.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could speed up should prices move above the close-by swing high at 51.88 where further buy stops might get triggered. With prices trading close to this year's high at 53.71, upside momentum could accelerate should the stock be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Ceridian HCM. Out of 23 times, CDAY closed higher 78.26% 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 78.26% with an average market move of 5.97%.