CTSH finds buyers again around 66.99
Cognizant Technology Solutions Corporation (CTSH) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
CTSH finished the month 20.24% higher at 68.32 after losing $0.86 (-1.24%) today, notably underperforming the Nasdaq 100 (1.78%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CTSH as at Jul 31, 2020):
Friday's trading range has been $2.01 (2.92%), that's above the last trading month's daily average range of $1.43. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for CTSH.
After having been unable to move lower than 67.00 in the prior session, Cognizant Technology found buyers again around the same price level today at 66.99. The last time this happened on Wednesday, CTSH gained 6.78% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 60.57.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 69.49 where further buy stops might get activated. With prices trading close to this year's high at 71.48, upside momentum could speed up should the market be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the upper Bollinger Band" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Cognizant Technology. Out of 89 times, CTSH closed higher 58.43% 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 59.55% with an average market move of 0.62%.