CERN closes above its opening price after recovering from early selling pressure
Cerner Corporation (CERN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CERN finished the week 3.33% higher at 67.28 after edging higher $0.16 (0.24%) today on low volume, slightly underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.55 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CERN as at May 22, 2020):
Friday's trading range has been $0.82 (1.22%), that's far below the last trading month's daily average range of $1.94. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CERN.
After moving lower in the prior session, the share managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the Takuri Line. The last time a Takuri Line showed up on February 20th, CERN actually lost -0.83% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 68.78 where further buy stops could get activated. As prices are trading close to May's high at 69.52, upside momentum might accelerate should Cerner mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for Cerner. Out of 46 times, CERN closed higher 60.87% 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 54.35% with an average market move of 0.46%.