CDAY finds buyers again around 62.86
Ceridian HCM Holding Inc. (CDAY) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CDAY ended the week 0.22% higher at 63.42 after losing $0.79 (-1.23%) today, notably underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading $0.72 higher after the open, Ceridian HCM was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Wednesday, CDAY lost -1.55% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CDAY as at May 22, 2020):
Friday's trading range has been $2.01 (3.13%), that's below the last trading month's daily average range of $2.91. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CDAY.
After having been unable to move lower than 62.93 in the previous session, the share found buyers again around the same price level today at 62.86.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
As prices are trading close to May's high at 68.21, upside momentum could accelerate should the stock mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Ceridian HCM. Out of 54 times, CDAY closed higher 64.81% 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 59.26% with an average market move of 1.70%.