CTAS pushes through 200-day moving average
Cintas Corporation (CTAS) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
CTAS ended the week -4.56% lower at 186.97 after gaining $2.95 (1.6%) today, strongly underperforming the Nasdaq 100 (2.77%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CTAS as at Oct 12, 2018):
Friday's trading range has been $3.50 (1.89%), that's slightly below the last trading month's daily average range of $3.75. 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 significantly higher than usual for CTAS.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
The share managed to break above the 200-day moving average at 184.52 today. When this moving average was crossed above the last time on March 24, 2016, CTAS gained 1.29% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling might speed up should prices move below the close-by swing low at 183.47 where further sell stops could get activated.
Among the four 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 Cintas Corporation. Out of 497 times, CTAS closed higher 60.76% 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 61.97% with an average market move of 1.05%.