ACM closes lower for the 2nd day in a row
AECOM (ACM) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ACM finished the month -3.7% lower at 36.19 after losing $0.69 (-1.87%) today on high volume, significantly underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ACM as at Jul 31, 2020):
Friday's trading range has been $1.30 (3.54%), that's far above the last trading month's daily average range of $0.96. 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 ACM.
AECOM closed back below the 20-day moving average at 36.63. When this moving average was crossed below the last time on Tuesday, ACM actually gained 2.70% on the following trading day. After having been unable to move above 36.91 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 36.79.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the close-by swing high at 37.36 where further buy stops could get activated. As prices are trading close to July's high at 38.15, upside momentum might speed up should the share mark new highs for the month. Further selling could move prices lower should the market test June's nearby low at 34.71.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Its common bearish interpretation has been confirmed for AECOM. Out of 142 times, ACM closed lower 54.93% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 52.82% with an average market move of -0.38%.