CREE closes within previous day's range after lackluster session
Cree Inc. (CREE) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CREE ended the week 21.01% higher at 51.73 after gaining $0.77 (1.51%) today on low volume, strongly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CREE as at May 22, 2020):
Friday's trading range has been $1.53 (3.02%), that's below the last trading month's daily average range of $2.37. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CREE.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on Wednesday, CREE actually lost -5.08% on the following trading day.
Prices are trading close to the key technical support level at 50.20 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Cree. Out of 68 times, CREE closed higher 50.00% 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 63.24% with an average market move of 0.82%.