STZ dominated by bears dragging the market lower throughout the day
Constellation Brands Inc. (STZ) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
STZ finished Wednesday at 193.20 tanking $3.39 (-1.72%), notably underperforming the S&P 500 (-0.46%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 195.25, the share confirmed its breakout through the previous session low after trading up to $2.42 below it intraday.
Daily Candlestick Chart (STZ as at Sep 16, 2020):
Wednesday's trading range has been $4.40 (2.23%), that's above the last trading month's daily average range of $3.59. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for STZ.
Notwithstanding a strong opening the market closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on August 17th, STZ actually gained 2.59% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 190.74 (S1).
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 186.48.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Constellation Brands. Out of 379 times, STZ closed higher 55.67% 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 62.80% with an average market move of 1.71%.