CHS breaks back above 50-day moving average
Chico's FAS Inc. (CHS) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
CHS finished the week 4.83% higher at 4.12 after gaining $0.11 (2.74%) today, notably outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CHS as at Feb 14, 2020):
Friday's trading range has been $0.20 (4.98%), that's slightly below the last trading month's daily average range of $0.20. 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 slightly lower than usual for CHS.
After moving lower in the prior session, the stock managed to close higher but below the previous day's open, forming a bullish Harami Candle. The last time this candlestick pattern showed up on Monday, CHS gained 6.97% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Chico's FAS managed to close back above the 50-day moving average at 4.07. Prices are trading close to the key technical resistance level at 4.23 (R1). After having been unable to move lower than 3.99 in the prior session, the market found buyers again around the same price level today at 3.96.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
With prices trading close to this year's high at 4.46, upside momentum might accelerate should CHS be able to break out to new highs for the year. As prices are trading close to February's low at 3.81, downside momentum could speed up should the stock mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Chico's FAS. Out of 70 times, CHS closed lower 57.14% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 64.29% with an average market move of -1.25%.