CVI still stuck within tight trading range
CVR Energy Inc. (CVI) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
CVI ended Wednesday at 13.76 gaining $0.47 (3.54%) on high volume, notably outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CVI as at Sep 16, 2020):
Wednesday's trading range has been $1.11 (8.29%), that's far above the last trading month's daily average range of $0.86. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CVI. Prices continued to consolidate within a tight trading range between 13.05 and 14.26 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical resistance level at 14.26 (R1). The stock was sold again around 14.16 after having seen highs at 14.23, 14.13 and 14.26 in the last three trading sessions. Obviously there is something going on at that level. The last time this happened on January 7th, CVI lost -1.65% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 14.23 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week Low" stand out. Its common bearish interpretation has been confirmed for CVR Energy. Out of 75 times, CVI closed lower 58.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 69.33% with an average market move of -6.13%.