CHRW rockets, gaining $1.34 (1.66%) within a single day
C.H. Robinson Worldwide Inc. (CHRW) Technical Analysis Report for Jul 10, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CHRW finished the week 3.83% higher at 82.21 after surging $1.34 (1.66%) today, outperforming the S&P 500 (1.05%). This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on May 18th, CHRW actually lost -2.42% on the following trading day. Today's close at 82.21 marks the highest recorded closing price since June 9th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 81.51, the share confirmed its breakout through the previous session high after trading up to $1.05 above it intraday.
Daily Candlestick Chart (CHRW as at Jul 10, 2020):
Friday's trading range has been $1.28 (1.57%), that's below the last trading month's daily average range of $1.81. 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.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 81.72 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since May 20th, 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 78.71 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 85.24, upside momentum could speed up should the market be able to break out to new highs for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. Its common bullish interpretation has been confirmed for C. H. Robinson. Out of 110 times, CHRW closed higher 56.36% 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 three trading days, showing a win rate of 60.00% with an average market move of 0.16%.