COMM closes higher for the 3rd day in a row
CommScope Holding Company Inc. (COMM) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, COMM ended Wednesday at 9.66 gaining $0.29 (3.09%), significantly outperforming the S&P 500 (-0.46%). Closing above Tuesday's high at 9.56, the share confirmed its breakout through the previous session high after trading up to $0.28 above it intraday.
Daily Candlestick Chart (COMM as at Sep 16, 2020):
Wednesday's trading range has been $0.44 (4.68%), that's slightly below the last trading month's daily average range of $0.48. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for COMM.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on September 2nd, COMM actually lost -5.47% on the following trading day.
CommScope Holding managed to close back above the 50-day moving average at 9.59 for the first time since September 9th. After spiking up to 9.84 during the day, the stock found resistance at the 100-day moving average at 9.70.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 100" stand out. Its common bearish interpretation has been confirmed for CommScope Holding. Out of 22 times, COMM closed lower 63.64% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 54.55% with an average market move of -3.31%.