CHRW closes within prior day's range after lackluster session
C.H. Robinson Worldwide Inc. (CHRW) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CHRW finished the week 7.39% higher at 77.86 after losing $0.04 (-0.05%) today on low volume, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.37 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CHRW as at May 22, 2020):
Friday's trading range has been $0.82 (1.05%), that's far below the last trading month's daily average range of $2.22. 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 higher than usual for CHRW.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on April 17th, CHRW actually lost -2.57% on the following trading day.
After having been unable to move above 78.30 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 78.19.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 79.86 where further buy stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for C. H. Robinson. Out of 569 times, CHRW closed higher 56.24% 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 55.01% with an average market move of 0.30%.