CRL closes within previous day's range
Charles River Laboratories International Inc. (CRL) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
CRL finished the month 14.13% higher at 198.99 after losing $2.32 (-1.15%) today, notably underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CRL as at Jul 31, 2020):
Friday's trading range has been $6.76 (3.36%), that's far above the last trading month's daily average range of $4.99. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CRL.
After trading down to 195.48 earlier during the day, the stock bounced off the key technical support level at 196.66 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on July 15th, CRL actually lost -1.42% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 203.26 where further buy stops might get triggered.
Among the two 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 Charles River. Out of 478 times, CRL closed higher 59.41% 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 58.58% with an average market move of 0.88%.