CXW closes above its opening price after recovering from early selling pressure
CoreCivic Inc. (CXW) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
CXW ended the month -4.81% lower at 8.91 after gaining $0.12 (1.37%) today, outperforming the S&P 500 (0.77%). Trading up to $0.13 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Wednesday, CXW actually lost -2.77% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CXW as at Jul 31, 2020):
Friday's trading range has been $0.26 (2.96%), that's below the last trading month's daily average range of $0.33. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CXW. Prices continued to consolidate within a tight trading range between 8.63 and 9.08 where it has been caught now for the whole last trading week.
In spite of a weak opening the stock managed to close above the prior day's open and close, forming a bullish Engulfing Candle.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 9.08 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 8.63 where further sell stops could get activated. With prices trading close to this year's low at 8.33, downside momentum might speed up should the share break out to new lows for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for CoreCivic. Out of 769 times, CXW closed higher 49.93% 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 52.93% with an average market move of 0.28%.