CTAS runs into sellers again around 197.66
Cintas Corporation (CTAS) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CTAS ended Thursday at 192.58 edging higher $0.25 (0.13%), significantly underperforming the Nasdaq 100 (5.72%). 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 Mar 26, 2020):
Thursday's trading range has been $14.85 (7.64%), that's slightly below the last trading month's daily average range of $16.76. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably 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. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading down to 182.81 earlier during the day, the share bounced off the key technical support level at 189.42 (S1). The failure to close below the support could increase that levels importance as support going forward. After having been unable to move above 200.56 in the previous session, Cintas ran into sellers again around the same price level today, missing to move higher than 197.66. The last time this happened on Tuesday, CTAS actually gained 10.66% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 200.56 where further buy stops could get triggered.
Among the six 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 429 times, CTAS closed higher 62.47% 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 64.10% with an average market move of 1.17%.