COO finds buyers at key support level
The Cooper Companies Inc. (COO) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, COO finished the week -3.07% lower at 287.42 after edging lower $0.38 (-0.13%) today, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (COO as at May 22, 2020):
Friday's trading range has been $3.10 (1.08%), that's far below the last trading month's daily average range of $7.92. 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 lower than usual for COO.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top. The last time a Takuri Line showed up on April 22nd, COO actually lost -1.30% on the following trading day.
After trading down to 285.24 earlier during the day, the stock bounced off the key technical support level at 285.26 (S1). The failure to close below the support could increase that levels significance as support going forward.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might accelerate should prices move below the close-by swing low at 283.70 where further sell stops could get activated. As prices are trading close to May's low at 278.61, downside momentum might speed up should The Cooper mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for The Cooper. Out of 687 times, COO closed higher 57.79% 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 63.76% with an average market move of 1.17%.