CHRW slips to lowest close since October 29th
C.H. Robinson Worldwide Inc. (CHRW) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
CHRW ended the week -5.03% lower at 87.69 after tanking $2.36 (-2.62%) today, slightly underperforming the S&P 500 (-2.33%) following today's NFP report. Today's close at 87.69 marks the lowest recorded closing price since October 29th. The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CHRW as at Dec 07, 2018):
Friday's trading range has been $3.45 (3.83%), that's far above the last trading month's daily average range of $2.07. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CHRW.
One bearish candlestick pattern matches today's price action, the Black Candle.
After spiking up to 90.81 during the day, the market found resistance at the 20-day moving average at 90.11. After having been unable to move lower than 87.25 in the prior session, the stock found buyers again around the same price level today at 87.36. The last time this happened on Monday, CHRW actually lost -2.84% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term. With its 50-day moving average crossing below its 200-day moving average, the share has entered a so-called "Death Cross" for the first time since August 1st. Showing increasing downward momentum in the short and medium-term the "Death Cross" is known to indicate a potential bear market on the horizon.
Selling might speed up should prices move below the close-by swing low at 87.25 where further sell stops could get activated. Trading close to October's low at 84.77 we might see further downside momentum if potential sell stops at the level get triggered.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Death Cross" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for C. H. Robinson. Out of 9 times, CHRW closed higher 55.56% 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 66.67% with an average market move of 1.26%.