ABC climbs to highest close since February 26th
AmerisourceBergen Corporation (ABC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ABC finished the week 8.62% higher at 93.14 after gaining $0.89 (0.96%) today on low volume, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 93.14 marks the highest recorded closing price since February 26th. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ABC as at May 22, 2020):
Friday's trading range has been $1.53 (1.66%), that's far below the last trading month's daily average range of $3.14. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ABC.
Four candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and two bearish patterns, the Bearish Hikkake Pattern and the Last Engulfing Top Pattern. The last time a Bearish Hikkake Pattern showed up on May 12th, ABC lost -5.00% on the following trading day.
Buyers managed to take out the key technical resistance level at 92.78 (now S1), which is likely to act as support going forward. After having been unable to move above 93.27 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 93.69.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 95.13 where further buy stops might get activated. With prices trading close to this year's high at 97.50, upside momentum could speed up should AmerisourceBergen be able to break out to new highs for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for AmerisourceBergen. Out of 294 times, ABC closed higher 59.52% 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 56.46% with an average market move of 0.57%.