CHDN runs into sellers again around 138.98
Churchill Downs Incorporated (CHDN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
CHDN finished the month 4.03% higher at 138.52 after edging lower $0.55 (-0.4%) today on high volume, strongly underperforming the S&P 500 (0.77%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CHDN as at Jul 31, 2020):
Friday's trading range has been $4.35 (3.23%), that's slightly below the last trading month's daily average range of $5.64. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CHDN.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical support level at 134.43 (S1). Prices are trading close to the key technical resistance level at 142.54 (R1). After having been unable to move above 139.28 in the prior session, Churchill Downs ran into sellers again around the same price level today, failing to move higher than 138.98. The last time this happened on Monday, CHDN lost -2.10% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 139.28 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Churchill Downs. Out of 637 times, CHDN closed higher 56.83% 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 61.22% with an average market move of 1.29%.