ABC closes above its opening price after recovering from early selling pressure
AmerisourceBergen Corp (ABC) Technical Analysis Report for Oct 12, 2018
ABC finished the week -2.32% lower at 88.48 after gaining $1.17 (1.34%) today, slightly underperforming the S&P 500 (1.42%). Trading up to $1.49 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ABC as at Oct 12, 2018):
Friday's trading range has been $2.02 (2.29%), that's slightly above the last trading month's daily average range of $1.92. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ABC.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top and the Takuri Line which are both known as bullish patterns. The last time a Takuri Line showed up on March 26th, ABC actually lost -1.11% on the following trading day.
AmerisourceBergen Corp managed to break above the 50-day moving average at 87.95 today. Prices are trading close to the key technical resistance level at 89.48 (R1). After having been unable to move lower than 86.87 in the previous session, the share found buyers again around the same price level today at 86.76.
Though the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for AmerisourceBergen Corp. Out of 466 times, ABC closed higher 54.72% 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 62.23% with an average market move of 0.85%.