AAP closes higher for the 3rd day in a row
Advance Auto Parts Inc W/I (AAP) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AAP ended Monday at 153.32 gaining $1.35 (0.89%), outperforming the S&P 500 (0.27%). Today's close at 153.32 marks the highest recorded closing price since January 7th. Closing above Friday's high at 153.21, the stock confirmed its breakout through the prior session high after trading up to $1.01 above it intraday.
Daily Candlestick Chart (AAP as at Aug 10, 2020):
Monday's trading range has been $2.27 (1.49%), that's below the last trading month's daily average range of $3.37. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AAP. Prices continued to consolidate within a tight trading range between 150.35 and 154.22 where it has been caught now for the whole last trading week.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 150.60 where further sell stops could get triggered. With prices trading close to this year's high at 160.95, upside momentum might speed up should Advance Auto be able to break out to new highs for the year. Further buying could move prices higher should the market test July's nearby high at 154.77.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Advance Auto. Out of 171 times, AAP closed higher 53.80% 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 62.57% with an average market move of 0.77%.