CMI ends the day on a bullish note closing near the high of the day

Cummins Inc. (CMI) Technical Analysis Report for Sep 14, 2018

Highlights

CMI closes above its opening price after recovering from early selling pressure
CMI pushes through 20-day moving average
CMI finds support at 100-day moving average
CMI closes higher for the 2nd day in a row
CMI ends the day on a bullish note closing near the high of the day

TQ Sentiment

Report Sentiment: 41% Bullish
Technical Forecast:

Overview

Moving higher for the 2nd day in a row, CMI finished the week 1.54% higher at 143.20 after gaining $0.94 (0.66%) today on low volume. Today's closing price of 143.20 marks the highest close since August 29th. Trading up to $0.84 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session. Ending with a strong close near the high of the day sets a bullish note for the next session.

Daily chart for CMI

Volatility

Friday's trading range was $1.83 (1.29%), that's far below last trading month's daily average range of $2.72. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being slightly below average. Prices continued to consolidate within a tight trading range between 139.28 and 144.00 which it has been in now for the last trading week.

Price Action

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.

Support/Resistance

Prices are trading close to the key resistance level at 144.27. After having been unable to move lower than 141.23 in the previous session, the stock found buyers again around the same price level today at 141.56. After trading as low as 141.56 during the day, the market found support at the 100-day moving average at 141.96.

Trend

Although still in a long-term downtrend, the short and medium-term trends both turned bullish already. Cummins Inc. managed to break above the 20-day moving average at 142.73 today for the first time since September 10th.

Order Flow

Buying might accelerate should prices move above the nearby swing high at 144.00 where further buy stops could get triggered. Further buying might move prices higher should the market test August's close-by high at 145.98. As prices are trading close to September's low at 139.04, downside momentum could speed up should CMI mark new lows for the month.

Conclusion

While classical technical analysis indicates a neutral sentiment for the next trading day, our quantitative statistics show a different picture being bullish.

Market Conditions for Cummins Inc.

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