CHRW pops to highest close since March 4th
C.H. Robinson Worldwide Inc. (CHRW) Technical Analysis Report for Apr 02, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, CHRW ended Thursday at 68.92 gaining $2.35 (3.53%), notably outperforming the S&P 500 (2.28%). Today's close at 68.92 marks the highest recorded closing price since March 4th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 68.85, C. H. Robinson confirmed its breakout through the prior session high after trading up to $0.71 above it intraday.
Daily Candlestick Chart (CHRW as at Apr 02, 2020):
Thursday's trading range has been $3.77 (5.73%), that's slightly below the last trading month's daily average range of $4.36. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CHRW.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 66.91 (now S1), which is likely to act as support going forward. The last time this happened on February 19th, CHRW gained 1.82% on the following trading day. After spiking up to 69.56 during the day, the share found resistance at the 50-day moving average at 69.41.
Crossing above the upper Bollinger Band for the first time since January 16th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 64.15 or signal the beginning of a strong momentum breakout leading to even higher prices.
While the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Further buying might move prices higher should the market test March's nearby high at 70.88.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for C. H. Robinson. Out of 289 times, CHRW closed higher 56.40% of the time on the next trading day after the market condition occurred.