STZ closes below its opening price unable to hold early session gains
Constellation Brands Inc. (STZ) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, STZ ended the week -0.34% lower at 193.08 after gaining $0.37 (0.19%) today, underperforming the S&P 500 (1.09%). Trading $4.89 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on October 4th, STZ lost -2.58% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (STZ as at Oct 11, 2019):
Friday's trading range has been $5.89 (3.04%), that's above the last trading month's daily average range of $4.15. 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.
Prices are trading close to the key technical support level at 192.00 (S1). After spiking up to 198.50 during the day, the market found resistance at the 100-day moving average at 197.01.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 100" stand out. Its common bearish interpretation has been confirmed for Constellation Brands. Out of 13 times, STZ closed lower 53.85% 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 three trading days, showing a win rate of 61.54% with an average market move of -0.17%.