CMP breaks below Thursday's low
Compass Minerals Intl Inc (CMP) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CMP finished the month 4.49% higher at 50.94 after losing $0.47 (-0.91%) today, strongly underperforming the S&P 500 (0.77%). Closing below Thursday's low at 50.95, Compass Minerals confirmed its breakout through the previous session low after trading up to $0.95 below it intraday.
Daily Candlestick Chart (CMP as at Jul 31, 2020):
Friday's trading range has been $1.19 (2.32%), that's below the last trading month's daily average range of $1.48. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CMP.
One bullish candlestick pattern matches today's price action, the Takuri Line. The last time a Takuri Line showed up on June 23rd, CMP actually lost -3.97% on the following trading day.
After trading as low as 50.00 during the day, the share found support at the 50-day moving average at 50.21. Prices are trading close to the key technical resistance level at 52.00 (R1).
While the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Its common bullish interpretation has been confirmed for Compass Minerals. Out of 70 times, CMP closed higher 52.86% 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 70.00% with an average market move of 1.56%.