CTLT pushes through key technical resistance level
Catalent Inc. (CTLT) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CTLT finished the week 4.44% higher at 60.46 after gaining $0.86 (1.44%) today, notably outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (CTLT as at Feb 14, 2020):
Friday's trading range has been $0.80 (1.34%), that's slightly below the last trading month's daily average range of $1.44. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CTLT.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 60.36 (now S1), which is likely to act as support going forward. The last time this happened on January 27th, CTLT gained 1.53% on the following trading day.
While the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Catalent. Out of 168 times, CTLT closed higher 57.14% 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 58.93% with an average market move of 1.00%.