A breaks below key technical support level
Agilent Technologies Inc. (A) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
A finished Wednesday at 99.92 losing $0.45 (-0.45%), but still slightly outperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (A as at Sep 16, 2020):
Wednesday's trading range has been $3.45 (3.41%), that's far above the last trading month's daily average range of $2.16. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for A. Prices continued to consolidate within a tight trading range between 98.02 and 101.53 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Dark Cloud Cover.
After trading as low as 98.08 during the day, the stock found support at the 20-day moving average at 98.98. Prices broke below the key technical support level at 100.10 (now R1), which is likely to act as resistance going forward. The last time this happened on September 4th, A lost -1.76% on the following trading day.
While the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the nearby swing low at 98.02 where further sell stops might get activated. With prices trading close to this year's high at 103.66, upside momentum could accelerate should Agilent Technologies be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Agilent Technologies. Out of 648 times, A closed higher 55.56% 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 60.96% with an average market move of 1.34%.