CTSH surges, gaining $1.88 (2.67%) within a single day
Cognizant Technology Solutions Corporation (CTSH) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
CTSH finished the week -4.04% lower at 72.17 after surging $1.88 (2.67%) today, slightly underperforming the Nasdaq 100 (2.77%). This is the biggest single-day gain in over three months. The last time we've seen such an unusually strong single-day gain on August 31st, CTSH actually lost -3.56% on the following trading day. Closing above Thursday's high at 72.13, the share confirmed its breakout through the prior session high after trading up to $0.37 above it intraday.
Daily Candlestick Chart (CTSH as at Oct 12, 2018):
Friday's trading range has been $1.68 (2.35%), that's far above the last trading month's daily average range of $1.18. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for CTSH.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 75.63.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Cognizant Technology. Out of 65 times, CTSH closed higher 55.38% 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 63.08% with an average market move of 1.84%.