CREE closes higher for the 3rd day in a row
Cree Inc. (CREE) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CREE ended Thursday at 41.08 gaining $2.75 (7.17%) on low volume, outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 40.27, the stock confirmed its breakout through the prior session high after trading up to $0.88 above it intraday.
Daily Candlestick Chart (CREE as at Mar 26, 2020):
Thursday's trading range has been $3.10 (8.13%), that's below the last trading month's daily average range of $3.96. 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 significantly higher than usual for CREE.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, CREE gained 1.89% on the following trading day.
The share managed to close above the 20-day moving average at 38.57 for the first time since February 5th. Prices are trading close to the key technical resistance level at 44.02 (R1).
Although Cree is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Cree. Out of 266 times, CREE closed higher 54.14% 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 four trading days, showing a win rate of 56.39% with an average market move of 0.33%.