CHE stuck within tight trading range
Chemed Corp (CHE) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CHE finished the week 4.07% higher at 477.16 after edging lower $0.05 (-0.01%) today on low volume, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CHE as at May 22, 2020):
Friday's trading range has been $6.20 (1.29%), that's far below the last trading month's daily average range of $14.69. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CHE. Prices continued to consolidate within a tight trading range between 471.43 and 480.99 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on May 7th, CHE actually gained 0.85% on the following trading day.
After having been unable to move lower than 472.66 in the previous session, the share found buyers again around the same price level today at 473.74.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 480.99 where further buy stops might get activated. With prices trading close to this year's high at 513.75, upside momentum could speed up should the market be able to break out to new highs for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Chemed. Out of 586 times, CHE closed higher 59.56% 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 60.41% with an average market move of 0.81%.