CP closes lower for the 2nd day in a row
Canadian Pacific Railway Limited (CP) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CP ended Tuesday at 211.48 losing $1.14 (-0.54%) on low volume, underperforming the S&P 500 (0.05%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CP as at Apr 16, 2019):
Tuesday's trading range has been $2.42 (1.14%), that's below the last trading month's daily average range of $3.12. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CP.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on December 24, 2018, CP actually gained 4.07% on the following trading day.
Prices are trading close to the key technical support level at 209.53 (S1). The market found buyers again today around 211.06 for the third trading day in a row after having found demand at 211.32 in the previous session and at 211.34 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 214.66 where further buy stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for Canadian Pacific. Out of 87 times, CP closed higher 57.47% 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 63.22% with an average market move of 1.65%.