CRH finds buyers at key support level
CRH PLC American Depositary Shares (CRH) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, CRH ended Thursday at 26.81 gaining $2.91 (12.18%) on high volume, notably outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (CRH as at Mar 26, 2020):
Thursday's trading range has been $1.94 (7.66%), that's far above the last trading month's daily average range of $1.47. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for CRH.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, CRH gained 4.50% on the following trading day.
After trading down to 25.14 earlier during the day, the stock bounced off the key technical support level at 25.28 (S1). The failure to close below the support might increase that levels significance as support going forward.
Though the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for CRH PLC. Out of 376 times, CRH closed higher 58.24% 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 55.85% with an average market move of 0.31%.