STZ pushes through 200-day moving average
Constellation Brands Inc. (STZ) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
STZ finished the week 1.12% higher at 225.69 after surging $7.92 (3.64%) today, notably outperforming the S&P 500 (1.42%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 221.95, Constellation Brands confirmed its breakout through the prior session high after trading up to $4.34 above it intraday.
Daily Candlestick Chart (STZ as at Oct 12, 2018):
Friday's trading range has been $6.25 (2.82%), that's far above the last trading month's daily average range of $4.19. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for STZ.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Monday, STZ actually lost -1.05% on the following trading day.
The stock managed to break above the 200-day moving average at 219.71 today. Prices are trading close to the key technical resistance level at 227.22 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 228.91 where further buy stops might get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Its common bullish interpretation has been confirmed for Constellation Brands. Out of 571 times, STZ closed higher 51.49% 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 62.52% with an average market move of 1.27%.