CTSH closes higher for the 2nd day in a row
Cognizant Technology Solutions Corporation (CTSH) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CTSH ended the month 7.21% higher at 56.82 after gaining $0.33 (0.58%) today, significantly underperforming the Nasdaq 100 (1.96%). 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 Jun 30, 2020):
Tuesday's trading range has been $1.26 (2.23%), that's below the last trading month's daily average range of $1.66. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CTSH.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on June 18th, CTSH actually lost -1.33% on the following trading day.
Prices are trading close to the key technical support level at 56.22 (S1).
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Trading close to April's high at 59.70 we might see further upside momentum if potential buy stops at the level get activated.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Cognizant Technology. Out of 195 times, CTSH closed higher 52.82% 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 nine trading days, showing a win rate of 51.28% with an average market move of -0.05%.