ABC closes within prior day's range
AmerisourceBergen Corporation (ABC) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ABC ended Tuesday at 104.70 edging higher $0.22 (0.21%), slightly underperforming the S&P 500 (0.36%) ahead of Wednesday's earnings report. Today's close at 104.70 marks the highest recorded closing price since January 29, 2018. Trading up to $1.02 lower after the open, the share 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 Aug 04, 2020):
ABC is set to report earnings before tomorrow's market open. For the upcoming report, analysts expect the company to have earned $1.55 per share. The company's last earnings report was released on May 7, 2020, when AmerisourceBergen Corporation reported earnings of $2.4 per share topping market expectations by 4.8%.
Tuesday's trading range has been $2.23 (2.14%), that's slightly below the last trading month's daily average range of $2.37. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ABC.
Prices are trading close to the key technical support level at 102.80 (S1). After having been unable to move above 104.86 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 105.21. The last time this happened on July 28th, ABC actually gained 1.18% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Trading close to 2018's high at 106.27 we might see further upside momentum if potential buy stops at the level get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week High" stand out. Its common bullish interpretation has been confirmed for AmerisourceBergen. Out of 216 times, ABC closed higher 56.94% 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 68.52% with an average market move of 0.93%.