STZ closes above its opening price after recovering from early selling pressure
Constellation Brands Inc. (STZ) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, STZ ended the month 1.3% higher at 174.95 after edging higher $0.78 (0.45%) today, significantly underperforming the S&P 500 (1.54%) ahead of Wednesday's earnings report. Trading up to $2.45 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 25th, STZ actually lost -2.50% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (STZ as at Jun 30, 2020):
STZ is set to report earnings before tomorrow's market open. For the upcoming report, analysts expect the company to have earned $1.92 per share. The company's last earnings report was released on April 3, 2020, when Constellation Brands Inc. reported earnings of $2.06 per share surpassing market expectations by 26.4%.
Tuesday's trading range has been $2.77 (1.58%), that's far below the last trading month's daily average range of $5.47. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for STZ.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After having been unable to move above 174.49 in the previous session, Constellation Brands ran into sellers again around the same price level today, missing to move higher than 175.11.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day before Earnings Report" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Constellation Brands. Out of 36 times, STZ closed higher 63.89% 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 63.89% with an average market move of 2.67%.