CIM slumps, losing $0.30 (-1.57%) within a single day on high volume
Chimera Investment Corporation (CIM) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, CIM ended Wednesday at 18.76 tanking $0.30 (-1.57%) on high volume, strongly underperforming the S&P 500 (0.3%) following today's earnings report. This is the biggest single-day loss in over a month. Today's close at 18.76 marks the lowest recorded closing price since January 22nd.
Daily Candlestick Chart (CIM as at Feb 13, 2019):
CIM is set to report earnings on Wednesday. For the upcoming report, analysts expect the company to have earned $0.56 per share. The company's last earnings report was released on Oct. 31, 2018, when Chimera Investment Corporation reported earnings of $0.6 per share surpassing market expectations by 7.1%.
Wednesday's trading range has been $0.70 (3.68%), that's far above the last trading month's daily average range of $0.18. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for CIM.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern.
After trading as low as 18.39 during the day, the market found support at the 200-day moving average at 18.48. The share closed below the 20-day moving average at 18.92 for the first time since January 8th. When this moving average was crossed below the last time on December 17, 2018, CIM actually gained 1.71% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post strong Earnings Report" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Chimera Investment. Out of 8 times, CIM closed higher 62.50% 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 62.50% with an average market move of 1.79%.