CTAS closes above its opening price after recovering from early selling pressure
Cintas Corporation (CTAS) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
CTAS ended the month 13.33% higher at 301.87 after edging higher $0.06 (0.02%) today on high volume, strongly underperforming the Nasdaq 100 (1.78%). Trading up to $4.67 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. 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 Jul 31, 2020):
Friday's trading range has been $5.18 (1.72%), that's slightly below the last trading month's daily average range of $7.63. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CTAS. Prices continued to consolidate within a tight trading range between 293.32 and 306.57 where it has been caught now for the whole last trading week.
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, four candlestick patterns are matching today's price action, the Dragonfly Doji which is known as bullish pattern, two bearish patterns, the Hanging Man and the Northern Doji and one neutral pattern, the Doji.
The share found buyers again today around 296.98 for the third trading day in a row after having found demand at 295.52 in the previous session and at 295.84 two days ago. The last time this happened on January 22nd, CTAS gained 1.30% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 306.57 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 295.52 where further sell stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for Cintas. Out of 125 times, CTAS closed higher 64.00% 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 57.60% with an average market move of 1.02%.