CF closes higher for the 2nd day in a row
CF Industries Holdings Inc. (CF) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CF finished the month -4.19% lower at 28.14 after gaining $0.59 (2.14%) today, outperforming the S&P 500 (1.54%). Closing above Monday's high at 27.95, the stock confirmed its breakout through the previous session high after trading up to $0.38 above it intraday.
Daily Candlestick Chart (CF as at Jun 30, 2020):
Tuesday's trading range has been $1.37 (5.02%), that's above the last trading month's daily average range of $1.14. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CF.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. In spite of a weak opening the share managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 15th, CF gained 4.69% on the following trading day.
Buyers managed to take out the key technical resistance level at 28.00 (now S1), which is likely to act as support going forward.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for CF. Out of 72 times, CF closed higher 56.94% 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 51.39% with an average market move of 0.97%.