CDW pushes through Wednesday's high
CDW Corporation (CDW) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
CDW finished Thursday at 101.06 gaining $9.15 (9.96%) on low volume, notably outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 96.79, the share confirmed its breakout through the prior session high after trading up to $5.11 above it intraday.
Daily Candlestick Chart (CDW as at Mar 26, 2020):
Thursday's trading range has been $11.35 (12.4%), that's far above the last trading month's daily average range of $7.70. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CDW.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a White Candle showed up on Tuesday, CDW actually lost -2.05% on the following trading day.
The stock managed to close above the 20-day moving average at 99.56 for the first time since February 20th. Prices are trading close to the key technical resistance level at 104.64 (R1). The market found buyers again today around 90.55 for the third trading day in a row after having found demand at 90.41 in the previous session and at 88.80 two days ago.
While CDW is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for CDW. Out of 52 times, CDW closed higher 59.62% 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 69.23% with an average market move of 1.44%.