CTSH breaks below Thursday's low
Cognizant Technology Solutions Corporation (CTSH) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
CTSH ended the week -1.68% lower at 68.42 after losing $1.19 (-1.71%) today, strongly underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 68.96, the stock confirmed its breakout through the prior session low after trading up to $1.16 below it intraday.
Daily Candlestick Chart (CTSH as at Feb 14, 2020):
Friday's trading range has been $1.60 (2.31%), that's slightly above the last trading month's daily average range of $1.23. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for CTSH.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on January 31st, CTSH actually gained 2.00% 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 close-by swing high at 69.70 where further buy stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Cognizant Technology. Out of 379 times, CTSH closed higher 54.88% 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 62.01% with an average market move of 0.75%.