CRUS closes lower for the 4th day in a row
Cirrus Logic Inc. (CRUS) Technical Analysis Report for Aug 07, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, CRUS ended the week -5.69% lower at 64.63 after losing $0.42 (-0.65%) today, underperforming the S&P 500 (0.06%). Closing below Thursday's low at 64.80, the stock confirmed its breakout through the prior session low after trading up to $0.92 below it intraday.
Daily Candlestick Chart (CRUS as at Aug 07, 2020):
Friday's trading range has been $1.29 (1.98%), that's below the last trading month's daily average range of $2.29. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CRUS.
One bullish candlestick pattern matches today's price action, the Hammer. The last time a Hammer showed up on June 20, 2018, CRUS actually lost -1.36% on the following trading day.
Prices are trading close to the key technical resistance level at 66.32 (R1).
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Further selling might move prices lower should the market test July's close-by low at 59.94.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hammer" stand out. Its common bullish interpretation has been confirmed for Cirrus Logic. Out of 24 times, CRUS closed higher 58.33% 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 58.33% with an average market move of 2.01%.