CHFS finds support at 20-day moving average
CHF Solutions Inc. (CHFS) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
CHFS finished the month 26.32% higher at 0.48 after losing $0.02 (-4.0%) today on low volume, significantly underperforming the S&P 500 (1.54%).
Daily Candlestick Chart (CHFS as at Jun 30, 2020):
Tuesday's trading range has been $0.04 (8.0%), that's below the last trading month's daily average range of $0.07. 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 CHFS.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on May 21st, CHFS actually gained 2.94% on the following trading day.
After trading as low as 0.46 during the day, the stock found support at the 20-day moving average at 0.47. Unable to break through the key technical resistance level at 0.50 (R1), the share closed below it after spiking up to 0.50 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
Although CHF Solutions is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the close-by swing low at 0.44 where further sell stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for CHF Solutions. Out of 18 times, CHFS closed lower 55.56% of the time on the next trading day after the market condition occurred.