ABC finds buyers around 75.60 for the third day in a row
AmerisourceBergen Corporation (ABC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
ABC finished Thursday at 84.16 surging $8.81 (11.69%), significantly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 81.47, the share confirmed its breakout through the previous session high after trading up to $3.71 above it intraday.
Daily Candlestick Chart (ABC as at Mar 26, 2020):
Thursday's trading range has been $9.58 (12.63%), that's far above the last trading month's daily average range of $6.44. 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.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close back above the 20-day moving average at 84.01 for the first time since March 17th. Prices are trading close to the key technical resistance level at 86.54 (R1). AmerisourceBergen found buyers again today around 75.60 for the third trading day in a row after having found demand at 75.11 in the prior session and at 76.16 two days ago.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 84.01. The last time this happened on Tuesday, ABC actually lost -5.64% on the following trading day.
Although the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the close-by swing high at 87.63 where further buy stops could get activated.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for AmerisourceBergen. Out of 592 times, ABC closed higher 53.72% 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 57.94% with an average market move of 0.54%.