ABC closes above its opening price after recovering from early selling pressure
AmerisourceBergen Corporation (ABC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ABC ended the week 2.63% higher at 94.36 after edging lower $0.16 (-0.17%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $3.93 lower after the open, AmerisourceBergen managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (ABC as at Feb 14, 2020):
Friday's trading range has been $4.51 (4.79%), that's far above the last trading month's daily average range of $2.57. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ABC.
Five candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Dragonfly Doji which are both known as bullish patterns, two bearish patterns, the Hanging Man and the Northern Doji and one neutral pattern, the Doji.
After trading as low as 90.23 during the day, the market found support at the 20-day moving average at 90.89. The last time this happened on January 30th, ABC actually lost -3.74% on the following trading day. Unable to break through the key technical resistance level at 94.72 (R1), the stock closed below it after spiking up to 94.74 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for AmerisourceBergen. Out of 435 times, ABC closed higher 60.00% 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 62.76% with an average market move of 0.91%.