COO rallies 2.25% closing $5.63 higher
The Cooper Companies (COO) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
COO ended the week -4.0% lower at 256.22 after surging $5.63 (2.25%) today, outperforming the S&P 500 (1.42%). This is the biggest single-day gain in over four months. Trading up to $1.89 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on October 2nd, COO actually lost -1.15% on the following trading day. Closing above Thursday's high at 255.68, the stock confirmed its breakout through the previous session high after trading up to $1.18 above it intraday.
Daily Candlestick Chart (COO as at Oct 12, 2018):
Friday's trading range has been $4.66 (1.83%), that's slightly below the last trading month's daily average range of $4.95. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for COO.
Prices are trading close to the key technical resistance level at 257.65 (R1).
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 267.28.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for The Cooper. Out of 61 times, COO closed higher 50.82% 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 65.57% with an average market move of 2.20%.