ABC still stuck within tight trading range
AmerisourceBergen Corporation (ABC) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
ABC ended the month 5.7% higher at 100.77 after gaining $1.78 (1.8%) today, slightly outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 100.62, AmerisourceBergen confirmed its breakout through the prior session high after trading up to $0.58 above it intraday.
Daily Candlestick Chart (ABC as at Jun 30, 2020):
Tuesday's trading range has been $2.63 (2.66%), that's slightly below the last trading month's daily average range of $2.69. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for ABC. Prices continued to consolidate within a tight trading range between 98.00 and 101.46 where it has been caught now for the whole last trading week.
In spite of a weak opening the stock managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
The share managed to close back above the 20-day moving average at 99.25. The market was bought again around 98.57 after having seen lows at 98.43, 98.20 and 98.48 in the last three trading sessions. Obviously there is something going on at that level. The last time this happened on May 6th, ABC gained 3.79% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 98.20 where further sell stops could get triggered. With prices trading close to this year's high at 103.37, upside momentum might accelerate should ABC be able to break out to new highs for the year.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior three Lows" stand out. Its common bullish interpretation has been confirmed for AmerisourceBergen. Out of 24 times, ABC closed higher 62.50% 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 two trading days, showing a win rate of 62.50% with an average market move of 0.04%.