CPS closes above its opening price after recovering from early selling pressure
Cooper-Standard Holdings Inc. (CPS) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CPS finished the week 2.09% higher at 9.78 after gaining $0.33 (3.49%) today on low volume, strongly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.55 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CPS as at May 22, 2020):
Friday's trading range has been $1.07 (11.31%), that's slightly below the last trading month's daily average range of $1.27. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CPS.
After moving lower in the prior session, the share managed to close higher but below the previous day's open, forming a bullish Harami Candle.
After having been unable to move above 10.01 in the prior session, Cooper-Standard Holdings ran into sellers again around the same price level today, failing to move higher than 9.98. The last time this happened on Tuesday, CPS lost -5.46% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for Cooper-Standard Holdings. Out of 27 times, CPS closed higher 55.56% 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 51.85% with an average market move of 1.54%.