CSL misses to close above 20-day moving average
Carlisle Companies Incorporated (CSL) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CSL finished Wednesday at 125.29 gaining $1.51 (1.22%), notably outperforming the S&P 500 (-0.46%). Closing above Tuesday's high at 125.10, the market confirmed its breakout through the previous session high after trading up to $1.74 above it intraday.
Daily Candlestick Chart (CSL as at Sep 16, 2020):
Wednesday's trading range has been $2.63 (2.11%), that's slightly below the last trading month's daily average range of $2.85. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CSL.
After spiking up to 126.84 during the day, the share found resistance at the 20-day moving average at 126.77. The last time this happened on June 19th, CSL lost -1.80% on the following trading day.
Although Carlisle Companies is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Carlisle Companies. Out of 50 times, CSL closed higher 58.00% 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 52.00% with an average market move of 0.75%.