CPA drops to lowest close since May 22nd
Copa Holdings S.A. Class A (CPA) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, CPA finished the month -18.04% lower at 41.44 after losing $0.79 (-1.87%) today, notably underperforming the S&P 500 (0.77%). Today's close at 41.44 marks the lowest recorded closing price since May 22nd. Closing below Thursday's low at 41.46, Copa Holdings confirmed its breakout through the previous session low after trading up to $0.63 below it intraday.
Daily Candlestick Chart (CPA as at Jul 31, 2020):
Friday's trading range has been $1.60 (3.79%), that's below the last trading month's daily average range of $2.23. 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 higher than usual for CPA.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on July 14th, CPA gained 3.87% on the following trading day.
Prices are trading close to the key technical resistance level at 42.60 (R1).
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 46.90.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for Copa Holdings. Out of 128 times, CPA closed higher 53.13% 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 55.47% with an average market move of 0.74%.