AMLP closes within prior day's range after lackluster session
Alerian MLP (AMLP) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
AMLP finished the week 9.94% higher at 26.44 after edging higher $0.08 (0.3%) today on low volume ahead of tomorrow's Memorial Day market holiday. Today's close at 26.44 marks the highest recorded closing price since March 6th. Trading up to $0.48 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 14th, AMLP gained 3.00% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AMLP as at May 22, 2020):
Friday's trading range has been $0.87 (3.34%), that's below the last trading month's daily average range of $1.19. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AMLP.
One bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 27.15 where further buy stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Its common bullish interpretation has been confirmed for Alerian MLP. Out of 522 times, AMLP closed higher 55.94% 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 53.83% with an average market move of 0.04%.