CTB closes below its opening price unable to hold early session gains
Cooper Tire & Rubber Company (CTB) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CTB finished Thursday at 18.81 edging higher $0.02 (0.11%), significantly underperforming the S&P 500 (6.24%). Trading $0.85 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Monday, CTB actually gained 9.55% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CTB as at Mar 26, 2020):
Thursday's trading range has been $1.59 (8.33%), that's slightly below the last trading month's daily average range of $1.91. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for CTB.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 17.94 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Cooper Tire. Out of 396 times, CTB closed higher 53.54% 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 52.02% with an average market move of 0.24%.