CREE dominated by bulls lifting the market higher throughout the day
Cree Inc. (CREE) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CREE finished the month 12.34% higher at 59.19 after gaining $0.89 (1.53%) today on low volume, slightly underperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 58.42, the stock confirmed its breakout through the previous session high after trading up to $1.15 above it intraday.
Daily Candlestick Chart (CREE as at Jun 30, 2020):
Tuesday's trading range has been $1.39 (2.39%), that's below the last trading month's daily average range of $2.05. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for CREE. Prices continued to consolidate within a tight trading range between 56.85 and 59.73 where it has been caught now for the whole last trading week.
Notwithstanding a weak opening Cree managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern.
Buyers managed to take out the key technical resistance level at 59.17 (now S1), which is likely to act as support going forward. After spiking up to 59.57 during the day, the market found resistance at the 20-day moving average at 59.48. The last time this happened on April 3rd, CREE actually gained 13.50% on the following trading day.
Though the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the nearby swing high at 61.29 where further buy stops could get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Cree. Out of 57 times, CREE closed higher 66.67% of the time on the next trading day after the market condition occurred.