COUP slumps -2.96% on high volume
Coupa Software Incorporated (COUP) Technical Analysis Report for Dec 02, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, COUP ended Monday at 148.94 tanking $4.55 (-2.96%) on high volume, notably underperforming the S&P 500 (-0.86%). This is the biggest single-day loss in over three weeks. Closing below Friday's low at 153.01, Coupa Software confirmed its breakout through the previous session low after trading up to $7.13 below it intraday.
Daily Candlestick Chart (COUP as at Dec 02, 2019):
Monday's trading range has been $8.07 (5.25%), that's far above the last trading month's daily average range of $5.29. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for COUP.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Black Candle showed up on November 4th, COUP lost -4.63% on the following trading day.
After trading down to 145.88 earlier during the day, the share bounced off the key technical support level at 147.01 (S1). The failure to close below the support could increase that levels significance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 159.97, upside momentum might accelerate should the market be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Coupa Software. Out of 76 times, COUP closed higher 64.47% 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 69.74% with an average market move of 4.62%.