CRUS closes higher for the 3rd day in a row
Cirrus Logic Inc. (CRUS) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CRUS finished the month 10.93% higher at 68.53 after gaining $1.36 (2.02%) today on high volume, notably outperforming the S&P 500 (0.77%). Today's close at 68.53 marks the highest recorded closing price since June 10th. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (CRUS as at Jul 31, 2020):
Friday's trading range has been $2.41 (3.52%), that's above the last trading month's daily average range of $1.86. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CRUS.
Three candlestick patterns are matching today's price action, the Hanging Man and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji.
Prices are trading close to the key technical resistance level at 69.46 (R1).
Crossing above the upper Bollinger Band for the first time since April 29th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 65.02 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on April 29th, CRUS actually lost -3.42% on the following trading day.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Cirrus Logic. Out of 92 times, CRUS closed lower 61.96% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 56.52% with an average market move of -1.20%.