CREE finds buyers again around 51.68
Cree Inc. (CREE) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
CREE finished Monday at 52.87 gaining $0.18 (0.34%), slightly underperforming the S&P 500 (0.38%). Trading up to $0.67 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CREE as at Jun 01, 2020):
Monday's trading range has been $1.94 (3.71%), that's slightly below the last trading month's daily average range of $2.29. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CREE.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical resistance level at 54.68 (R1). After having been unable to move lower than 51.46 in the previous session, Cree found buyers again around the same price level today at 51.68. The last time this happened on May 15th, CREE gained 15.53% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 51.46 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Cree. Out of 595 times, CREE closed higher 52.77% 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 53.11% with an average market move of 0.45%.