CLGX breaks back above 20-day moving average
CoreLogic Inc. (CLGX) Technical Analysis Report for Oct 28, 2020 | by Techniquant Editorial Team
CLGX ended Wednesday at 76.23 surging $7.98 (11.69%) on high volume, notably outperforming the S&P 500 (-3.53%). This is the biggest single-day gain in over four months. Today's close at 76.23 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 68.97, the share confirmed its breakout through the previous session high after trading up to $9.48 above it intraday.
Daily Candlestick Chart (CLGX as at Oct 28, 2020):
Wednesday's trading range has been $10.78 (15.93%), that's far above the last trading month's daily average range of $1.35. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for CLGX.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Notwithstanding a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Belt-hold and the White Candle which are both known as bullish patterns. The last time a Bullish Belt-hold showed up on May 15, 2019, CLGX gained 1.49% on the following trading day.
CoreLogic managed to close back above the 20-day moving average at 68.74. The stock found buyers again today around 67.67 for the third trading day in a row after having found demand at 68.19 in the previous session and at 67.78 two days ago.
Crossing above the upper Bollinger Band for the first time since October 13th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 68.74 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 16 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for CoreLogic. Out of 66 times, CLGX closed higher 66.67% 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 53.03% with an average market move of 1.40%.