CHFS drops to lowest close since August 21st
CHF Solutions Inc. (CHFS) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, CHFS finished the week -8.47% lower at 1.08 after losing $0.03 (-2.7%) today, notably underperforming the S&P 500 (1.42%). Today's close at 1.08 marks the lowest recorded closing price since August 21st. Trading $0.03 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 1.11, the share confirmed its breakout through the prior session low after trading up to $0.04 below it intraday.
Daily Candlestick Chart (CHFS as at Oct 12, 2018):
Friday's trading range has been $0.08 (7.14%), that's slightly below the last trading month's daily average range of $0.08. 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 CHFS.
One bearish candlestick pattern matches today's price action, the Black Candle.
Crossing below the lower Bollinger Band for the first time since August 7th, prices have shown unusually strong downward momentum in the short-term. This might either indicate a potential selling climax after which prices could head back up towards the mean of the Bollinger Bands at 1.18 or signal the beginning of a strong momentum breakout leading to even lower prices. The last time prices broke out below the lower Bollinger Band on August 7th, CHFS lost -11.76% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 0.93, downside momentum might accelerate should the stock break out to new lows for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Its common bearish interpretation has been confirmed for CHFS. Out of 433 times, CHFS closed lower 54.73% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 63.28% with an average market move of -1.78%.