CMI rises to highest close since April 23, 2018
Cummins Inc. (CMI) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
CMI ended Tuesday at 167.22 gaining $2.25 (1.36%), notably outperforming the S&P 500 (0.05%). Today's close at 167.22 marks the highest recorded closing price since April 23, 2018. Trading up to $1.52 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on April 12th, CMI actually lost -0.66% on the following trading day. Closing above Monday's high at 166.67, the share confirmed its breakout through the previous session high after trading up to $1.09 above it intraday.
Daily Candlestick Chart (CMI as at Apr 16, 2019):
Tuesday's trading range has been $2.66 (1.6%), that's above the last trading month's daily average range of $2.24. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CMI.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for Cummins. Out of 389 times, CMI closed higher 52.96% 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 58.10% with an average market move of 1.07%.