CDW closes above its opening price after recovering from early selling pressure
CDW Corporation (CDW) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, CDW finished the week 4.24% higher at 138.29 after gaining $1.01 (0.74%) today, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 138.29 marks the highest recorded closing price since January 23rd. Trading up to $0.89 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (CDW as at Feb 14, 2020):
Friday's trading range has been $1.91 (1.38%), that's below the last trading month's daily average range of $2.71. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CDW.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After spiking up to 138.96 during the day, the share found resistance at the 50-day moving average at 138.64. The last time this happened on June 5, 2019, CDW actually gained 1.01% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for CDW. Out of 31 times, CDW closed higher 58.06% 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 80.65% with an average market move of 2.18%.