CPRT finds buyers again around 85.43
Copart Inc. (CPRT) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CPRT ended the week 8.44% higher at 86.25 after edging lower $0.15 (-0.17%) 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 missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CPRT as at May 22, 2020):
Friday's trading range has been $2.31 (2.69%), that's slightly below the last trading month's daily average range of $2.43. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CPRT.
One bearish candlestick pattern matches today's price action, the Shooting Star.
Prices are trading close to the key technical support level at 84.05 (S1). After having been unable to move lower than 85.60 in the prior session, the market found buyers again around the same price level today at 85.43. The last time this happened on May 12th, CPRT actually lost -3.41% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Copart. Out of 560 times, CPRT closed higher 54.82% 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 57.68% with an average market move of 0.86%.