CLB still stuck within tight trading range
Core Laboratories N.V. (CLB) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CLB finished the week 8.69% higher at 19.64 after edging lower $0.05 (-0.25%) today, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. 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 (CLB as at May 22, 2020):
Friday's trading range has been $0.62 (3.21%), that's far below the last trading month's daily average range of $1.64. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CLB. Prices continued to consolidate within a tight trading range between 18.95 and 20.83 where it has been caught now for the whole last trading week.
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, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on April 22nd, CLB gained 15.01% on the following trading day.
Prices are trading close to the key technical support level at 19.02 (S1). Core Laboratories found buyers again today around 19.22 for the third trading day in a row after having found demand at 19.16 in the previous session and at 19.37 two days ago.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 20.17 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 19.16 where further sell stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Core Laboratories. Out of 129 times, CLB closed lower 52.71% 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 53.49% with an average market move of -0.35%.