ABC misses to close above 100-day moving average
AmerisourceBergen Corporation (ABC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ABC finished Wednesday at 96.79 gaining $1.89 (1.99%), strongly outperforming the S&P 500 (-0.46%). Closing above Tuesday's high at 96.08, AmerisourceBergen confirmed its breakout through the previous session high after trading up to $1.88 above it intraday.
Daily Candlestick Chart (ABC as at Sep 16, 2020):
Wednesday's trading range has been $2.60 (2.72%), that's slightly above the last trading month's daily average range of $2.36. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ABC.
Buyers managed to take out the key technical resistance level at 96.49 (now S1), which is likely to act as support going forward. After spiking up to 97.96 during the day, the stock found resistance at the 100-day moving average at 97.25. The last time this happened on March 2nd, ABC lost -1.48% on the following trading day.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
As prices are trading close to September's high at 100.09, upside momentum could speed up should the market mark new highs for the month.
Among the six 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 291 times, ABC closed higher 60.14% 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 57.39% with an average market move of 0.64%.