CRI closes within prior day's range after lackluster session
Carter's Inc. (CRI) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
CRI ended the week 3.54% higher at 110.30 after gaining $0.53 (0.48%) today on low volume, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.31 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Tuesday, CRI gained 3.26% on the following trading day. 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 (CRI as at Feb 14, 2020):
Friday's trading range has been $0.90 (0.82%), that's below the last trading month's daily average range of $1.92. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CRI.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 110.65 (R1). The share ran into sellers again today around 110.47 for the third trading day in a row after having found sellers at 110.50 in the prior session and at 110.65 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 110.65 where further buy stops might get triggered. With prices trading close to this year's high at 112.46, upside momentum could speed up should the market be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Carter's. Out of 139 times, CRI closed higher 53.24% 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 65.47% with an average market move of 1.39%.