CTAS breaks back below 100-day moving average
Cintas Corporation (CTAS) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CTAS finished the week 5.82% higher at 240.65 after losing $1.91 (-0.79%) today, notably underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 240.81, the market confirmed its breakout through the prior session low after trading up to $1.13 below it intraday.
Daily Candlestick Chart (CTAS as at May 22, 2020):
Friday's trading range has been $2.45 (1.01%), that's far below the last trading month's daily average range of $7.56. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CTAS.
Cintas closed back below the 100-day moving average at 241.13. When this moving average was crossed below the last time on March 6th, CTAS lost -7.89% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 245.72 where further buy stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Cintas. Out of 40 times, CTAS closed higher 67.50% 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 75.00% with an average market move of 1.97%.