COO closes within previous day's range after lackluster session
The Cooper Companies Inc. (COO) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
COO finished the month -0.25% lower at 282.93 after edging higher $0.23 (0.08%) today, underperforming the S&P 500 (0.77%). Trading up to $4.09 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (COO as at Jul 31, 2020):
Friday's trading range has been $5.53 (1.96%), that's below the last trading month's daily average range of $7.02. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for COO.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, three candlestick patterns are matching today's price action, the Southern Doji and the Takuri Line which are both known as bullish patterns and one neutral pattern, the Doji. The last time a Takuri Line showed up on May 22nd, COO gained 3.65% on the following trading day.
Unable to break through the key technical resistance level at 283.70 (R1), the stock closed below it after spiking up to 284.13 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move lower than 277.83 in the prior session, the market found buyers again around the same price level today at 278.60.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 289.05 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 277.83 where further sell stops might get activated. Further selling could move prices lower should the market test June's nearby low at 268.92.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for The Cooper. Out of 695 times, COO closed higher 57.41% 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 63.02% with an average market move of 1.10%.