COLM dominated by bulls lifting the market higher throughout the day
Columbia Sportswear Company (COLM) Technical Analysis Report for Aug 07, 2020 | by Techniquant Editorial Team
COLM ended the week 0.46% higher at 76.19 after gaining $1.51 (2.02%) today on low volume, strongly outperforming the S&P 500 (0.06%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (COLM as at Aug 07, 2020):
Friday's trading range has been $2.36 (3.18%), that's slightly below the last trading month's daily average range of $2.41. 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 COLM. Prices continued to consolidate within a tight trading range between 73.30 and 77.80 where it has been caught now for the whole last trading week.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern, the Piercing Pattern and the White Candle which are known as bullish patterns. The last time a White Candle showed up on Wednesday, COLM actually lost -3.96% on the following trading day.
Prices are trading close to the key technical resistance level at 77.79 (R1).
Although the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 77.80 where further buy stops could get triggered. Trading close to June's low at 73.04 we might see further downside momentum if potential sell stops at the level get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Piercing Pattern" stand out. Its common bullish interpretation has been confirmed for Columbia Sportswear. Out of 8 times, COLM closed higher 75.00% 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 87.50% with an average market move of 6.27%.