AMLP finds buyers again around 21.42
Alerian MLP (AMLP) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
AMLP finished Wednesday at 21.82 gaining $0.45 (2.11%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (AMLP as at Sep 16, 2020):
Wednesday's trading range has been $0.76 (3.53%), that's far above the last trading month's daily average range of $0.59. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly 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 21.17 and 22.18 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical resistance level at 22.27 (R1). After having been unable to move lower than 21.33 in the previous session, Alerian MLP found buyers again around the same price level today at 21.42.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 22.27 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 21.17 where further sell stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Alerian MLP. Out of 509 times, AMLP closed lower 47.35% 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 10 trading days, showing a win rate of 51.28% with an average market move of -0.46%.