AMLP finds support at 20-day moving average
Alerian MLP (AMLP) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
AMLP finished the week 1.33% higher at 9.89 after flat today. 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 (AMLP as at Mar 15, 2019):
Friday's trading range has been $0.11 (1.11%), that's below the last trading month's daily average range of $0.14. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AMLP. Prices continued to consolidate within a tight trading range between 9.79 and 9.97 where it has been caught now for the whole last trading week.
Regardless of a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, four candlestick patterns are matching today's price action, the Hanging Man, the Last Engulfing Top Pattern and the Northern Doji which are known as bearish patterns and one neutral pattern, the Doji. The last time a Hanging Man showed up on January 9th, AMLP lost -1.61% on the following trading day.
After trading as low as 9.80 during the day, the ETF found support at the 20-day moving average at 9.84.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
With prices trading close to this year's high at 10.15, upside momentum might accelerate should Alerian MLP be able to break out to new highs for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Alerian MLP. Out of 404 times, AMLP closed higher 53.47% 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 three trading days, showing a win rate of 56.44% with an average market move of 0.07%.