CNK finds buyers around 11.25 for the third day in a row
Cinemark Holdings Inc Inc. (CNK) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CNK ended Thursday at 12.68 gaining $1.05 (9.03%), notably outperforming the S&P 500 (6.24%). Trading up to $0.70 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 Monday, CNK actually lost -5.78% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CNK as at Mar 26, 2020):
Thursday's trading range has been $1.64 (13.72%), that's below the last trading month's daily average range of $2.70. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CNK.
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.
Prices are trading close to the key technical resistance level at 13.40 (R1). The share found buyers again today around 11.25 for the third trading day in a row after having found demand at 11.00 in the previous session and at 11.49 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 14.97 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 11.00 where further sell stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Cinemark Holdings. Out of 319 times, CNK closed higher 53.92% 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 two trading days, showing a win rate of 56.11% with an average market move of 0.16%.