CIM closes higher for the 3rd day in a row
Chimera Investment Corporation (CIM) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CIM ended Wednesday at 9.12 surging $0.18 (2.01%) on high volume, significantly outperforming the S&P 500 (-0.46%). Today's close at 9.12 marks the highest recorded closing price since July 29th. Trading up to $0.20 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Tuesday's high at 9.05, Chimera Investment confirmed its breakout through the prior session high after trading up to $0.10 above it intraday.
Daily Candlestick Chart (CIM as at Sep 16, 2020):
Wednesday's trading range has been $0.38 (4.24%), that's far above the last trading month's daily average range of $0.24. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CIM.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar.
After trading down to 8.77 earlier during the day, the stock bounced off the key technical support level at 8.92 (S1). The failure to close below the support could increase that levels significance as support going forward. After having been unable to move lower than 8.81 in the previous session, the share found buyers again around the same price level today at 8.77. The last time this happened on August 28th, CIM actually lost -1.98% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further buying might move prices higher should the market test August's close-by high at 9.24.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Chimera Investment. Out of 403 times, CIM closed higher 52.85% 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 52.85% with an average market move of 0.23%.