CR breaks below key technical support level
Crane Co. (CR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CR ended the week -0.58% lower at 87.33 after losing $0.59 (-0.67%) today on low volume, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 87.62, the market confirmed its breakout through the previous session low after trading up to $0.99 below it intraday.
Daily Candlestick Chart (CR as at Feb 14, 2020):
Friday's trading range has been $1.41 (1.6%), that's slightly above the last trading month's daily average range of $1.37. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CR.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 86.63 during the day, the stock found support at the 20-day moving average at 86.95. Prices broke below the key technical support level at 87.56 (now R1), which is likely to act as resistance going forward. The last time this happened on January 31st, CR actually gained 1.40% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to February's low at 85.74, downside momentum might speed up should the share mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Crane Co.. Out of 196 times, CR closed higher 53.06% 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 62.76% with an average market move of 0.90%.