COHR finds buyers around 128.77 for the third day in a row
Coherent Inc. (COHR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
COHR ended the month -9.8% lower at 130.98 after losing $1.30 (-0.98%) today on high volume, notably underperforming the S&P 500 (1.54%). Trading $2.40 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (COHR as at Jun 30, 2020):
Tuesday's trading range has been $5.80 (4.39%), that's slightly below the last trading month's daily average range of $5.87. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for COHR. Prices continued to consolidate within a tight trading range between 128.77 and 135.49 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on May 22nd, COHR actually gained 1.59% on the following trading day.
Unable to break through the key technical resistance level at 134.15 (R1), the market closed below it after spiking up to 134.57 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. Coherent found buyers again today around 128.77 for the third trading day in a row after having found demand at 129.78 in the previous session and at 129.04 two days ago.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the nearby swing high at 135.49 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for Coherent. Out of 123 times, COHR closed higher 55.28% 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 65.85% with an average market move of 2.47%.