CGNX climbs to highest close since January 25, 2018
Cognex Corporation (CGNX) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CGNX finished the month 11.97% higher at 66.87 after gaining $0.89 (1.35%) today on high volume, outperforming the S&P 500 (0.77%). Today's close at 66.87 marks the highest recorded closing price since January 25, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 66.41, the stock confirmed its breakout through the previous session high after trading up to $0.54 above it intraday.
Daily Candlestick Chart (CGNX as at Jul 31, 2020):
Friday's trading range has been $2.26 (3.49%), that's above the last trading month's daily average range of $1.61. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CGNX.
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.
Buyers managed to take out the key technical resistance level at 66.62 (now S1), which is likely to act as support going forward. The last time this happened on June 25th, CGNX actually lost -4.40% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Trading close to 2018's high at 70.00 we might see further upside momentum if potential buy stops at the level get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Cognex. Out of 255 times, CGNX closed higher 56.08% 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 57.65% with an average market move of 1.16%.