ZTO pops to highest close since March 11th
ZTO Express Inc. American Depositary Shares each representing one Class A. (ZTO) Technical Analysis Report for Apr 02, 2020 | by Techniquant Editorial Team
ZTO ended Thursday at 27.35 surging $1.03 (3.91%), significantly outperforming the S&P 500 (2.28%). Today's close at 27.35 marks the highest recorded closing price since March 11th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 26.78, ZTO Express confirmed its breakout through the previous session high after trading up to $0.66 above it intraday.
Daily Candlestick Chart (ZTO as at Apr 02, 2020):
Thursday's trading range has been $1.58 (6.07%), that's slightly above the last trading month's daily average range of $1.53. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ZTO.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 26th, ZTO actually lost -1.20% on the following trading day.
Buyers managed to take out the key technical resistance level at 27.05 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 28.06 (R1). After having been unable to move lower than 25.66 in the prior session, the market found buyers again around the same price level today at 25.86.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 28.06, upside momentum could accelerate should the stock be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for ZTO Express. Out of 92 times, ZTO closed higher 53.26% 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 60.87% with an average market move of 1.03%.