CNK closes below its opening price unable to hold early session gains
Cinemark Holdings Inc Inc. (CNK) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CNK ended the week 18.18% higher at 14.04 after edging lower $0.18 (-1.27%) today on low volume, notably underperforming the S&P 500 (0.24%) ahead of Tuesday's earnings report. Trading $0.19 higher after the open, Cinemark Holdings was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, CNK actually gained 7.55% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CNK as at May 22, 2020):
CNK is set to report earnings on Tuesday. For the upcoming report, analysts expect the company to have earned $-0.13 per share. The company's last earnings report was released on Feb. 21, 2020, when Cinemark Holdings Inc Inc. reported earnings of $0.22 per share failing market expectations by -51.1%.
Friday's trading range has been $0.51 (3.58%), that's far below the last trading month's daily average range of $1.13. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CNK.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 15.11 where further buy stops could get activated. Further buying might move prices higher should the market test April's close-by high at 16.02.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Cinemark Holdings. Out of 479 times, CNK closed higher 53.65% 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 54.91% with an average market move of 0.55%.