CTSH breaks back below 20-day moving average
Cognizant Technology Solutions Corporation (CTSH) Technical Analysis Report for Dec 06, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CTSH finished Thursday at 69.40 losing $0.62 (-0.89%), notably underperforming the Nasdaq 100 (0.64%) ahead of tomorrow's NFP report. Trading up to $0.99 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, CTSH actually lost -2.66% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (CTSH as at Dec 06, 2018):
Thursday's trading range has been $1.37 (1.98%), that's slightly below the last trading month's daily average range of $1.49. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for CTSH.
One bullish candlestick pattern matches today's price action, the Takuri Line.
Cognizant Technology closed back below the 20-day moving average at 69.72 for the first time since November 26th.
Although the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Further selling might move prices lower should the market test November's close-by low at 67.01.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Its common bullish interpretation has been confirmed for Cognizant Technology. Out of 51 times, CTSH closed higher 66.67% 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 60.78% with an average market move of 1.54%.