CDNA Signals SELL On 3 Hour Chart
The Technical Analysis
Published: March 19, 2022 at 2:24 PM EDT
On March 18, 2022, CareDx Inc stock (CDNA) achieved a SELL signal on 1 of our proprietary algorithms indicating near-term downward movement for CDNA. Based on historically similar occurrences, the likelihood of this near-term movement is very high. Although this analysis may be technical, it clearly lays out targets for pending price action for CDNA. The chart of all potential movement is at the bottom of this article.
This algorithm follows the common Relative Strength Index with a shorter length. It signals when extreme overbought and oversold conditions occur. This particular algorithm signals rarely but maintains one of the best accuracy levels of all my algorithms.
Relative Strength Index 3x Extrema SELL - CDNA 3 Hour Chart Accuracy
This algorithm accurately identifies SELL points for CDNA on 3 hour charts 100.0% of the time it signals. A successful signal means the equity price moves down at least 0.75% over the next 40 3 Hour bars. When the algorithm properly performs, success is seen at least 1 trading bars after the signal closing price with a median max gain occurring around 23 trading bars after the signal bar. Successful signals see average reversals of 13.61% from the signal bar closing price and median reversals of 12.867%. The equity reverses greater than two percent 100.0% of the time, greater than five percent 86.957% of the time, and moves beyond ten percent 65.217% of occurrences. The signal does not necessarily mean an immediate price reversal will occur. Price reversal is delayed 95.652% of the time. In these instances, the reversals do not obey the signal and begin sizable downward movement for an additional 2 to 9 bars after the triggering signal occurs. This delay can see the equity rise 2.464% to 12.768% beyond the signal closing price of 39.7.
Analysis Based on This Section
Based on the signal closing price of 39.7, the target price is between 32.78 and 37.05 over the next 16 to 32 bars after the signal. However, the equity may first rise toward a price in the range of 40.68 to 44.77 over the first 2 to 9 trading bars.
Summarization of Data
Based on all of the historical datapoints, this analysis has settled on the most likely courses of movement. The red boxes in the image below indicate the likely location of a rise if the signal is not immediately accurate. The green boxes likely hold the extent of signal accuracy. The larger boxes contain all movements aligned with historical data. The smaller box is comprised of the likely half of the median historical data. In this instance, half of the historical data shows the stock may first move up between 40.68 and 44.77. This is the small red box. Likewise, half of the historical target end points finish in the smaller green box. In this instance, the target bottom is likely between 32.78 and 37.05.
View this interactive chart on TradingView to see where the stock currently is for this idea.
DISCLOSURE: The algorithms and historical accuracy percentages mentioned in these articles are for reference only. Anything can happen in the future when it comes to market movement. Historical price action is not always indicative of future movement. Just because the signals may have a high degree of accuracy, they can always fail. Traders assume all risk to their assets when investing in short or long-term opportunities.