CCI closes below its opening price unable to hold early session gains
Crown Castle International Corp. (CCI) Technical Analysis Report for Oct 16, 2020 | by Techniquant Editorial Team
CCI finished the week -0.27% lower at 166.90 after losing $1.24 (-0.74%) today on low volume, underperforming the S&P 500 (0.01%). Trading $1.41 higher after the open, Crown Castle was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CCI as at Oct 16, 2020):
Friday's trading range has been $2.06 (1.23%), that's far below the last trading month's daily average range of $3.31. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CCI. Prices continued to consolidate within a tight trading range between 163.45 and 168.50 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving higher in the prior session, the market closed lower but above the previous day's open today, forming a bearish Harami Candle. The last time this candlestick pattern showed up on August 10th, CCI lost -2.64% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Shooting Star which are both known as bearish patterns.
Prices are trading close to the key technical resistance level at 168.50 (R1). After having been unable to move above 168.50 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 168.45.
While the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the nearby swing high at 168.50 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 163.45 where further sell stops might get triggered. Trading close to August's high at 169.36 we could see further upside momentum if potential buy stops at the level get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. Its common bearish interpretation has been confirmed for Crown Castle. Out of 60 times, CCI closed lower 51.67% 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 56.67% with an average market move of -0.05%.