CTAS finds buyers at key support level
Cintas Corporation (CTAS) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, CTAS ended the week 3.03% higher at 177.79 after gaining $0.31 (0.17%) today, slightly outperforming the Nasdaq 100 (-0.3%). Today's close at 177.79 marks the highest recorded closing price since December 6, 2018. Trading up to $1.56 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 177.61, the market confirmed its breakout through the previous session high after trading up to $0.29 above it intraday.
Daily Candlestick Chart (CTAS as at Jan 11, 2019):
Friday's trading range has been $2.49 (1.41%), that's far below the last trading month's daily average range of $4.63. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CTAS.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar.
After trading down to 175.41 earlier during the day, the share bounced off the key technical support level at 176.12 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on December 6, 2018, CTAS actually lost -3.62% on the following trading day. After having been unable to move lower than 175.52 in the prior session, Cintas found buyers again around the same price level today at 175.41.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the nine 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. Out of 424 times, CTAS closed higher 61.79% 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 62.50% with an average market move of 1.24%.